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Winners and losers in the crisis : the changing anatomy of economic inequality in the UK 2007 - 2010

Gambaro, Ludovica and Hills, John and Cunliffe, Jack and Obolenskaya, Polina (2012) Winners and losers in the crisis : the changing anatomy of economic inequality in the UK 2007 - 2010. Centre for Analysis of Social Exclusion, London School of Economics.

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Abstract

Despite being better qualified than previous generations, people in their twenties were worst hit by the crisis in terms of unemployment, pay and incomes. A detailed analysis of economic inequalities, comparing 2010 with three years earlier, shows that: ? Gaps between the lowest and highest-paid workers grew wider. Median (middle) hourly wages fell by 1.6 per cent in real terms, but by nearly 3 per cent for the lowest paid full-time men and women and by over 4 per cent for the worst paid male part-timers. Weekly earnings of the lowest paid full-timers fell by more than 5 per cent. ? Net incomes after taxes and benefits, fell by 2 per cent for those on middle incomes, before allowing for housing costs. Benefit increases in line with inflation insulated some of the the poorest households from the recession, and their income increased before allowing for housing costs. But after housing costs are taken into account, their incomes fell by 2 per cent – although the incomes of better-off households fell further. ? More detailed analysis reveals significant geographical differences. After allowing for their housing costs, the poorest Londoners became as much as 24 per cent worse off, while the incomes of the poorest people living in the most deprived three-tenths of neighbourhoods nationally declined by more than 10 per cent. ? Children and pensioners were better protected against the recession than other groups. Young adults, despite being more likely than previous generations to hold degree qualifications or higher, were not. Among those in their early 20s: o The proportion in full-time employment fell by 9 percentage points for men and 7 points for women. o Hourly wages fell 5.5 per cent for men and 5.3 per cent for women o Weekly full-time earnings fell 6.1 per cent for both men and women o Net income fell by 10.8 per cent before housing costs and 16.5 per cent after housing costs.

Item Type: Book
Controlled Keywords: poverty, exclusion and equalities; equality, capabilities and human rights; social policy; socio-economic inequalities; earnings inequality; educational inequalities; wealth inequality
Divisions: IOE Departments > Departments > Centre for Longitudinal Studies
Depositing User: Atira Pure
Date Deposited: 18 Feb 2014 12:38
Last Modified: 29 Jan 2015 10:29
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