%0 Report %A Prasad, Eswar %T Wage Inequality in the United Kingdom, 1975-99 %D 2002 %8 2002 Jun %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 510 %U https://www.iza.org/publications/dp510 %X This paper uses micro data from the New Earnings Survey to document that cross-sectional wage inequality in the U.K., which rose sharply in the 1980s and continued to rise moderately through the mid-1990s, has remained essentially unchanged in the latter half of the 1990s. As in the U.S., changes in within-group inequality are shown to account for a substantial fraction of the rise in wage dispersion that has occurred over the last 25 years. However, shifts in the structure of employment – including changes in the occupational and industrial composition of aggregate employment – are also shown to have had important effects on the evolution of wage inequality. In addition, there has been a significant convergence of the wage distributions for men and women; this has had a stabilizing effect on the overall wage distribution. %K micro survey data %K cross-sectional wage inequality %K between- and within-group inequality %K composition effects