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Wage Inequality in the United Kingdom, 1975-99

  • Prasad, Eswar

    ()

    (Cornell University)

This paper uses micro data from the New Earnings Survey to document that cross-sectional wage inequality in the U.K., which rose sharply in the 1980s and continued to rise moderately through the mid-1990s, has remained essentially unchanged in the latter half of the 1990s. As in the U.S., changes in within-group inequality are shown to account for a substantial fraction of the rise in wage dispersion that has occurred over the last 25 years. However, shifts in the structure of employment – including changes in the occupational and industrial composition of aggregate employment – are also shown to have had important effects on the evolution of wage inequality. In addition, there has been a significant convergence of the wage distributions for men and women; this has had a stabilizing effect on the overall wage distribution.

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File URL: http://ftp.iza.org/dp510.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 510.

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Length: 34 pages
Date of creation: Jun 2002
Date of revision:
Publication status: published in: IMF Staff Papers, 2002, 49 (3), 339-362
Handle: RePEc:iza:izadps:dp510
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  1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  2. Thomas Lemieux & Nicole M. Fortin, 2000. "Are Women's Wage Gains Men's Losses? A Distributional Test," American Economic Review, American Economic Association, vol. 90(2), pages 456-460, May.
  3. Aghion, Philippe & Howitt, Peter & Violante, Giovanni L, 2000. "General Purpose Technology and Within-Group Inequality," CEPR Discussion Papers 2474, C.E.P.R. Discussion Papers.
  4. Oded Galor & Omer Moav, 2000. "Ability-Biased Technological Transition, Wage Inequality, And Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 469-497, May.
  5. Dickens, Richard, 2000. "The Evolution of Individual Male Earnings in Great Britain: 1975-95," Economic Journal, Royal Economic Society, vol. 110(460), pages 27-49, January.
  6. repec:nsr:niesrd:45 is not listed on IDEAS
  7. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
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