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Abstract:

cover
CEP Election Analysis
Real Wages and Living Standards in the UK
Rui Costa and Stephen Machin
May 2017
Paper No' CEPEA036:
Full Paper (pdf)

Tags: real wages; uk 2017 general election; brexit; uk economy; labour market

Since the global financial crisis of 2007/08, workers’ real wages and family living standards in the UK have suffered to an extent unprecedented in modern history. Real wages of the typical (median) worker have fallen by almost 5% since 2008, while real family incomes for families of working age have just about recovered to pre-crisis levels. But almost all groups of individuals and families – with the exception of pensioner households – are no better off on average than in 2008. In particular, there is an important generational shift, with young people doing considerably worse.