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Wage Inequality in the United Kingdom, 1975-99

Author/Editor: Prasad, Eswar
Authorized for Distribution: February 1, 2002
Electronic Access: Free Full Text (PDF file size is 894KB)
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper provides evidence that cross-sectional wage inequality in the U.K. rose sharply in the 1980s, continued to rise moderately through the mid-1990s and has remained essentially unchanged since then. As in the U.S., increases in within-group inequality account for a substantial fraction of the rise in wage dispersion during 1975-99. Compositional shifts in the occupational and industry structures of aggregate employment are also shown to have had important effects on the evolution of wage inequality. The convergence of the wage distributions for men and women has, however, had a stabilizing effect on the overall wage distribution.
 
Series: Working Paper No. 02/42
Subject(s): Wages | United Kingdom | Data analysis
Author's keyword(s): Wage and earnings distribution | micro survey data | between- and within-group inequality | composition effects
 
English  
    Published:   February 1, 2002        
    ISBN/ISSN:   1934-7073   Format:   Paper
    Stock No:   WPIEA0422002   Pages:   30
    Price:   US$15.00
       
     
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