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Changes in earnings inequality and mobility in Great Britain 1978/9-2005/6

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  • Dickens, Richard
  • McKnight, Abigail

Abstract

This paper examines changes in earnings inequality and mobility between 1978/9 and 2005/6 using a unique dataset that includes both those with secure patterns of employment and a wider group who experience periods without earnings. It finds significant increases in annual earnings inequality for both male and female employees. On most measures this is greater for men. When wider inequality is measured including periods of no earnings, inequality for men increases and for women it falls as employment among women increased. It finds little long-range mobility. There is some evidence of greater short-range upward mobility but also greater movement from the lowest earning decile since 1997/98. More sophisticated measures of mobility suggest falling mobility for men through the 1980s and 1990s but some greater mobility since 2002. For women there has been lower mobility and less variation over time. Increases in employment for women have led to more equalising mobility.

Suggested Citation

  • Dickens, Richard & McKnight, Abigail, 2008. "Changes in earnings inequality and mobility in Great Britain 1978/9-2005/6," LSE Research Online Documents on Economics 28245, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:28245
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    File URL: http://eprints.lse.ac.uk/28245/
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    References listed on IDEAS

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    1. repec:bla:econom:v:67:y:2000:i:268:p:477-97 is not listed on IDEAS
    2. Dickens, Richard, 2000. "The Evolution of Individual Male Earnings in Great Britain: 1975-95," Economic Journal, Royal Economic Society, vol. 110(460), pages 27-49, January.
    3. Christian Schluter & Mark Trede, 2003. "Local versus Global Assessment of Mobility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1313-1335, November.
    4. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
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    Cited by:

    1. Laetitia Comminges & Arnak Dalalyan, 2012. "Minimax Testing of a Composite null Hypothesis Defined via a Quadratic Functional in the Model of regression," Working Papers 2012-19, Center for Research in Economics and Statistics.
    2. Mike Brewer & Monica Costa Dias & Jonathan Shaw, 2012. "Lifetime inequality and redistribution," IFS Working Papers W12/23, Institute for Fiscal Studies.
    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. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Simon Beck & Thierry Kamionka, 2012. "Who Benefits from Growth ?," Working Papers 2012-18, Center for Research in Economics and Statistics.
    6. Brian Bell & Nicholas Bloom & Jack Blundell, 2022. "Income dynamics in the United Kingdom and the impact of the Covid‐19 recession," Quantitative Economics, Econometric Society, vol. 13(4), pages 1849-1878, November.
    7. P. Jenkins, Stephen, 2009. "Spaghetti unravelled: a model-based description of differences in income-age trajectories," ISER Working Paper Series 2009-30, Institute for Social and Economic Research.
    8. Magali Duque & Abigail McKnight, 2019. "Understanding the relationship between inequalities and poverty: a review of dynamic mechanisms," CASE Papers /217, Centre for Analysis of Social Exclusion, LSE.
    9. Duque, Magali & Mcknight, Abigail, 2019. "Understanding the relationship between inequalities and poverty: a review of dynamic mechanisms," LSE Research Online Documents on Economics 103457, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    earnings inequality; labour market mobility;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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