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The Changing Education Distribution and Income Inequality in Great Britain

Tasseva, Iva (2021) 'The Changing Education Distribution and Income Inequality in Great Britain.' Review of Income and Wealth, 67 (3). pp. 659-683. ISSN 0034-6586

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Over the past years, education attainment has increased at an unprecedented rate in Great Britain. We analyse how the education expansion affected inequality in household net incomes since the early 2000s. We show that, all else being equal, education composition changes led to higher living standards mostly through higher wages. As education expansion led to larger income gains in the middle and top than at the bottom of the distribution, income inequality increased. Despite the increasing share of high-educated workers, we find limited evidence of a ‘compression’ effect on inequality, as the higher education wage premium remained broadly unchanged.

Item Type: Article
Uncontrolled Keywords: education expansion; income distribution; decomposition
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 12 Oct 2020 08:53
Last Modified: 06 Jan 2022 14:17

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