Secure Data Service

Description of Project

This is a study of occupational earnings 1979-2010 looking at: widening occupational differentials; increasing within-group dispersion; the relative contribution of each, to the growth in earnings inequality; and the relative stability of inter-group differentials when located within the aggregate earnings distribution.

 A study of occupational pay over time requires the development of a consistent occupational classification over the period 1979-2010 during which NES codes are replaced by SOC90 in 1991 and SOC90 is replaced by SOC2000 in 2002. Dr Victoria Wass has identified a need within the social science research community to explore the extent that this is possible.  

 The primary methods of analysis are regression and shift share analysis using a series of alternative decompositions as a means of disentangling the various contributory factors - employment or  wage change, a widening of occupational differentials or a widening of the within occupation distribution of earnings. These issues have been widely explored using the US Census data but not for the UK (an exception up to 1999 is Prasad 2002).

 Following the National Equality Panel Report (2010) which locates group medians within the aggregate earnings distribution, this study locates occupational quartiles within the aggregate earnings distribution and finds a pattern of stable occupational differentials which points towards fairness and equality, ideas which long pre-date markets, as important determinants of pay.

Secure Data Service dataset in use

Annual Survey Of Hours And Earnings, 1997-2009: Secure Data Service Access

Researcher

Dr Victoria Wass, Cardiff University