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The Labour Market in WinterThe State of Working Britain$
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Paul Gregg and Jonathan Wadsworth

Print publication date: 2011

Print ISBN-13: 9780199587377

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:osobl/9780199587377.001.0001

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Changes in UK Wage Inequality Over the Last Forty Years

Changes in UK Wage Inequality Over the Last Forty Years

(p.155) 11 Changes in UK Wage Inequality Over the Last Forty Years
The Labour Market in Winter

Stephen Machin

Oxford University Press

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.

Keywords:   wage inequality, upper tail wage, lower tail wage, labour market, inequality stagnation, labour market polarisation, national minimum wage, wage distribution, wage changes, supply and demand

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