Income inequality and the labour market in Britain and the US
Richard Blundell (),
Robert Joyce (),
Agnes Norris Keiller () and
James P. Ziliak ()
Additional contact information
Robert Joyce: Institute for Fiscal Studies and Institute for Fiscal Studies
Agnes Norris Keiller: Institute for Fiscal Studies and Institute for Fiscal Studies
James P. Ziliak: Institute for Fiscal Studies and University of Kentucky
No W17/25, IFS Working Papers from Institute for Fiscal Studies
We study household income inequality in both Great Britain and the United States and the interplay between labour market earnings and the tax system. While both Britain and the US have witnessed secular increases in 90/10 male earnings inequality over the last three decades, this measure of inequality in net family has declined in Britain while it has risen in the US. We examine the interaction between labour market earnings in the family, assortative mating, the tax and benefit system and household income inequality. We find that both countries have witnessed sizeable changes in employment which have primarily occurred on the extensive margin in the US and on the intensive margin in Britain. Increases in the generosity of the welfare system in Britain played a key role in equalizing net income growth across the wage distribution whereas the relatively weak safety net available to non-workers in the US mean this growing group has seen particularly adverse developments in their net incomes. An updated version of this working paper can be accessed here.
Keywords: inequality; labour market; earnings; tax (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Income inequality and the labour market in Britain and the US (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ifs:ifsewp:17/25
Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Access Statistics for this paper
More papers in IFS Working Papers from Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().