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Rising Earnings Inequality and Returns to Skills in the United Kingdom Labour Market *
Author(s) -
Moll Terence
Publication year - 1992
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1992.tb00062.x
Subject(s) - earnings , economics , labour economics , inequality , unemployment , position (finance) , demographic economics , economic growth , mathematical analysis , mathematics , accounting , finance
. Since the later 1970s, earnings inequality in the United Kingdom has been rising steadily. It is argued that this rise reflects increasing returns to skills, as proxied by factors like education and occupation, while the strengthening labour market position of relatively skilled workers was also reflected in improving relative unemployment and labour force participation rates. These trends are best explained by a rise in the relative demand for skilled labour, implying that the most efficient way of restraining earnings inequality growth is through vigorous educational policies.