Regional earnings inequality in Great Britain: Evidence from Quantile Regressions

The increase in national earnings inequality in Great Britain over the last two decades has predominantly been a result of increasing earnings inequality within the regions of Great Britain, and not rising inequality between regions. However, there is a severe lack of empirical research exploring the evolution of earnings inequality within regions. This paper investigates the causes of rising within-region inequality in Great Britain. It examines the changes that have taken place between 1976 and 1995, and regional quantile regressions are estimated to reveal those factors that have contributed to the rise in within-region inequality.