Changes in UK Wage Inequality Over the Last Forty Years

Stephen J. Machin

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Labor market dynamics and wage inequality Income, Poverty, and Inequality Economic Theory and Policy

Abstract

This chapter studies wage inequality in the UK, which has risen significantly since the late 1970s. It first describes the patterns of change and trends in wage structures, and then explains why these changes have occurred. It emphasizes that there have been different episodes of changes in wage inequalities. The chapter also argues that the standard supply-demand model of the labour market is successful in accounting for some, but not all, of these observed changes.

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1992Changes in Relative Wages, 1963-1987: Supply and Demand Factors 2002Skill‐Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles 2010Recent Developments in Intergenerational Mobility 1998Technology and changes in skill structure: evidence from seven OECD countries 2005What's the Good of Education?2008An Appraisal of Economic Research on Changes in Wage Inequality

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2012Wage inequality, minimum wage effects, and spillovers 2014Real Wages and Unemployment in the Big Squeeze 2012Minimum wages and wage inequality: some theory and an application to the UK 2022Automation, Job Polarisation, and Structural Change

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