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The Representativeness of the Annual Survey of Hours and Earnings and its Implications for UK Wage Policy

Bryson, Alex; Forth, John; Phan, Van; Singleton, Carl; Ritchie, Felix; Whittard, Damian; Stokes, Lucy; (2025) The Representativeness of the Annual Survey of Hours and Earnings and its Implications for UK Wage Policy. British Journal of Industrial Relations (In press).

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Abstract

The Annual Survey of Hours and Earnings (ASHE) is based on an annual one per cent sample of employee jobs and provides many of the UK’s official earnings statistics. These statistics are produced using official weights designed to make the achieved sample in each year representative of the population of employee jobs in Britain by gender, age, occupation, and region. However, we show that jobs in small, young, privatesector organisations remain significantly under-represented after applying these weights. To address this issue, we develop new weights and demonstrate their importance through policy-relevant examples. Our new estimates suggest that the bite of the National Living Wage is greater than previously reported, and the gender pay gap is wider. We conclude that a new official review of the methodology for ASHE is merited, to improve the accuracy and reliability of data informing earnings analysis and research in the UK.

Type: Article
Title: The Representativeness of the Annual Survey of Hours and Earnings and its Implications for UK Wage Policy
Publisher version: https://onlinelibrary.wiley.com/journal/14678543
Language: English
Additional information: This version is the author-accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Earnings, Non-response bias, Attrition, Gender Wage Gap, Low Pay, National Living Wage
UCL classification: UCL
UCL > Provost and Vice Provost Offices > School of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education
UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute
URI: https://discovery.ucl.ac.uk/id/eprint/10212107
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