Pay

The gap between rich and poor has increased dramatically over the last 25 years and the incomes of the bottom 10 per cent were no higher in 1991 than in 1967.

We analyze how relative wage movements across birth cohorts and education groups during the 1980s affected the distribution of household consumption.

The gap between those who earn the most and those who earn the least in the UK is growing rapidly and in 1992 was larger than it had been at any time this century. It is one of the major factors underlying the rise in the inequality of household income and in poverty levels. This, together with its implications about the way the labour market is changing, makes it one of the most important issues facing policymakers today.