Library Header Image
LSE Research Online LSE Library Services

LSE centre for economic performance – inequality: still high, but labour’s policies kept it down

Machin, Stephen and Van Reenen, John ORCID: 0000-0001-9153-2907 (2010) LSE centre for economic performance – inequality: still high, but labour’s policies kept it down. British Politics and Policy at LSE (28 Apr 2010). Website.

Download (183kB) | Preview


A new series of Election Analyses is now available from the LSE’s Centre for Economic Performance (CEP). The series will discuss the research evidence on some of the key policy battlegrounds of the 2010 General Election, including macroeconomic policy, immigration, health, education, crime, poverty and inequality, labour market policy, regional policy, energy and the environment, financial regulation and bankers’ bonuses, and foreign aid. Overall wage and income inequality rose slightly under the Labour government since 1997. This was driven by the top half (especially the top 10%) of the income distribution. There was no change in inequality (and even falls on some measures) for those in the bottom half of the distribution. These are the key findings of the latest CEP Election Analysis from the Centre for Economic Performance (CEP). Authors Professors Stephen Machin and John Van Reenen note that the increase in wage inequality is an international phenomenon driven by increases in the demand for more skilled workers. There is relatively little that any government can do about this in the long term: the best policy is to keep improving the skills of the workforce through education and training.

Item Type: Online resource (Website)
Official URL:
Additional Information: © 2010 The Authors
Divisions: Economics
Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HJ Public Finance
J Political Science > JN Political institutions (Europe) > JN101 Great Britain
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited: 24 Jan 2012 09:30
Last Modified: 15 Sep 2023 18:08

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics