National and regional earnings inequality in Great Britain: Evidence from quantile regressions

Abstract

Earnings inequality in Great Britain has increased substantially over the last two decades at both the national and regional levels. This paper examines the changes that have taken place within both the national and regional distributions of earnings in Great Britain over the period 1976 to 1995. The estimation of national OLS and quantile regressions highlights those factors that have contributed to the rise in national earnings inequality, while the estimation of regional quantile earnings equations reveal the causes of increasing regional earnings inequality.