2017
DOI: 10.1920/wp.ifs.2017.1701
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Two decades of income inequality in Britain: the role of wages, household earnings and redistribution

Abstract: We study earnings and income inequality in Britain over the past two decades, including the period of relatively "inclusive" growth from 1997-2004 and the Great Recession. We focus on the middle 90%, where trends have contrasted strongly with the "new inequality" at the very top. Household earnings inequality has risen, driven by male earnings -although a 'catch-up' of female earnings did hold down individual earnings inequality and reduce within-household inequality. Nevertheless, net household income inequal… Show more

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Cited by 36 publications
(65 citation statements)
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References 23 publications
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“…Given that most one-earner couples with children are composed of a working father and a non-working mother (85%), the poor performance of fathers' earnings is the key explanation for the difference between this group and other working families. This is really part of a wider story of a remarkable lack of growth in male earnings in recent history (not just fathers' earnings), as is shown in Belfield et al (2017). What this highlights is that this broad trend has had large impacts not just on rates of inwork poverty but on the types of family most at risk of it.…”
Section: Explaining the Stagnation In Incomes Among One-earner Couplementioning
confidence: 86%
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“…Given that most one-earner couples with children are composed of a working father and a non-working mother (85%), the poor performance of fathers' earnings is the key explanation for the difference between this group and other working families. This is really part of a wider story of a remarkable lack of growth in male earnings in recent history (not just fathers' earnings), as is shown in Belfield et al (2017). What this highlights is that this broad trend has had large impacts not just on rates of inwork poverty but on the types of family most at risk of it.…”
Section: Explaining the Stagnation In Incomes Among One-earner Couplementioning
confidence: 86%
“…11 A more in-depth study of the factors that explain changes in income inequality since 1968 can be found in Brewer, Muriel and Wren-Lewis (2009). 12 An in-depth analysis of changes in the 90:10 ratio between 1994 and 2014 can be found in Belfield et al (2017). 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 90:10 ratio…”
Section: Long-run Trends In Inequalitymentioning
confidence: 99%
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“…Part-time jobs rarely provide a good hourly wage, with ramifications for workers' financial security in the short and longer terms, and hourly wages can be particularly poor for workers employed in lower level occupations (Bardasi & Gornick, 2008;Harkness, Borkowska, & Pelikh, 2019). Much of the evidence for the picture of poorly paying part-time jobs is based on women workers, but postrecession studies warned of lowering wages for male part-timers (Belfield et al, 2017;Bell & Blanchflower, 2018;Nightingale, 2019).…”
Section: The Qualit Y Of Men ' S Part-time Jobs and Occupational mentioning
confidence: 99%
“…The British story becomes more reminiscent of the US story once the intensive margin is incorporated. Belfield et al (2017) have shown that the increase in part-time work among low-wage British men has occurred among single men and those in couples, and those with and without children. Explaining the origins of this change, and in particular whether it represents a demand-side or supply-side shift, is a key challenge for future research given its implications for welfare and potential possible policy responses.…”
Section: Racementioning
confidence: 99%