Regional Earnings Inequality in Great Britain: A decomposition analysis

Heather Suzanne Dickey

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13 Citations (Scopus)

Abstract

This paper investigates the degree of earnings inequality in Great Britain over the period 1975-96 using individual-based data. It finds that the contribution of within-group inequality to both earnings inequality cross-sectionally and to its trend over time is substantially more important than the contribution of between-group inequality. Thus, the primary source of increasing inequality in the overall earnings distribution is increasing inequality within regions and not differences in average earnings between regions. A decomposition of the Gini coefficient is also adopted to illustrate how regional convergence in average earnings has been accompanied by increasing overall earnings inequality in the UK.

Original languageEnglish
Pages (from-to)605-612
Number of pages7
JournalRegional Studies
Volume35
Issue number7
DOIs
Publication statusPublished - Oct 2001

Keywords

  • regional convergence
  • increasing earnings inequality
  • within-group inequality

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