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The decline of labour market institutions and the rise in wage inequality in Britain

Machin, S; (1997) The decline of labour market institutions and the rise in wage inequality in Britain. EUROPEAN ECONOMIC REVIEW , 41 (3-5) 647 - 657.

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Abstract

At the same time as the role of labour market institutions declined very dramatically in Britain there was a very sharp rise in wage inequality that, since 1980, has increased at a faster pace than in most advanced countries. Britain in the 1980s and early 1990s therefore provides a very good testing ground for evaluating the importance of labour market institutions in explaining the evolution of the wage structure. I look at this in terms of two institutions that have traditionally propped up wage levels at the bottom end of the wage distribution, unions and minimum wages. I find that their weakening has played an important part in the rise in wage inequality in Britain. (C) 1997 Elsevier Science B.V.

Type: Article
Title: The decline of labour market institutions and the rise in wage inequality in Britain
Location: ISTANBUL, TURKEY
Keywords: unions, minimum wages, wage inequality, DISPERSION, UNIONS
UCL classification: UCL > School of Arts and Social Sciences
URI: http://discovery.ucl.ac.uk/id/eprint/16922
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