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Have UK Earnings Distributions Polarised?

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  • Holmes, Craig
  • Mayhew, Ken

Abstract

The occupational structure of many labour markets has shifted away from middle earning routine work (Goos and Manning, 2007). This polarisation phenomenon raises the question about the consequences for earnings distributions – a polarised workforce should be, all things being equal, increase the incidence of high pay and low pay and raise earnings inequality. However, if the wage structure changes, the implications are less clear. This paper examines earnings data in the UK between 1987 and 2012 and argues that recent occupational shifts do not necessarily lead to a polarisation of earnings.

Suggested Citation

  • Holmes, Craig & Mayhew, Ken, 2015. "Have UK Earnings Distributions Polarised?," INET Oxford Working Papers 2015-02, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    • Handle: RePEc:amz:wpaper:2015-02
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    File URL: https://www.inet.ox.ac.uk/files/WP2.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paul Sissons & Anne E Green & Neil Lee, 2018. "Linking the Sectoral Employment Structure and Household Poverty in the United Kingdom," Work, Employment & Society, British Sociological Association, vol. 32(6), pages 1078-1098, December.

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    More about this item

    Keywords

    Polarisation; occupational structure; earnings distributions; low pay; demand for high skills;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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