Abstract: This chapter tracks changes in wages and wage inequality in Britain since the 1970s, focusing on the principal differences in wage levels between individuals and on what explains the rise in wage inequality. Section 4.2 begins with a discussion of the principal data sources used to track the evolution of wages over time. Section 4.3 gives some facts and figures on the extent of wage inequality across groups and over time, while Section 4.4 outlines and evaluates the main hypotheses put forward to explain rising wage inequality. Section 4.5 offers some concluding observations.

Keywords: Britain, wage determination, wage inequality, wage levels,