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The Changing Picture of Earnings Inequality in Britain and the Role of Regional and Sectoral Differences

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  • Mark B. Stewart

Abstract

This paper examines differences in inequality between regions and between sectors of the economy. The growth in overall inequality since the mid-1990s is found to have been driven primarily by that in London (with a smaller difference for the South East and East Anglia) and by that in the financial sector (with a smaller difference for the business activities sector). While these differences for London and the financial sector overlap to some extent, they also have significant separate influences once each other is controlled for. The changes in inequality in the rest of Britain and in the other sectors of the economy are numerically small and statistically insignificant.

Suggested Citation

  • Mark B. Stewart, 2011. "The Changing Picture of Earnings Inequality in Britain and the Role of Regional and Sectoral Differences," National Institute Economic Review, National Institute of Economic and Social Research, vol. 218(1), pages 20-32, October.
    • Handle: RePEc:sae:niesru:v:218:y:2011:i:1:p:r20-r32
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    Cited by:

    1. Richard V. Burkhauser & Nicolas Herault & Stephen P. Jenkins & Roger Wilkins, 2020. "What accounts for the rising share of women in the top 1\%?," Working Papers 544, ECINEQ, Society for the Study of Economic Inequality.
    2. Colin P. Green & John S. Heywood, 2016. "Don't Forget the Gravy! Are Bonuses Just Added on Top of Salaries?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(3), pages 490-513, July.
    3. Abigail Mcknight & T. Tsang, 2013. "GINI Country Report: Growing Inequalities and their Impacts in the United Kingdom," GINI Country Reports united_kingdom, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Gauthier Lanot & Panos Sousounis, 2017. "The National Minimum Wage and the Substitutability Between Young and Old Workers in Low Paid Occupations," Manchester School, University of Manchester, vol. 85(5), pages 601-633, September.
    5. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.
    6. Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2012. "Performance Pay and Ethnic Wage Differences in Britain," University of Cyprus Working Papers in Economics 06-2012, University of Cyprus Department of Economics.
    7. Richard V. Burkhauser & Nicolas Herault & Stephen P. Jenkins & Roger Wilkins, 2023. "What Accounts for the Rising Share of Women in the Top 1 percent?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(1), pages 1-33, March.
    8. Neil Lee & Paul Sissons & Katy Jones, 2016. "The Geography of Wage Inequality in British Cities," Regional Studies, Taylor & Francis Journals, vol. 50(10), pages 1714-1727, October.
    9. Colin Green & John Heywood, 2012. "Don't Forget the Gravy! Are Bonuses and Time Rates Complements?," Working Papers 13424023, Lancaster University Management School, Economics Department.

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