CEP LSE RSS Contact Us YouTube Facebook Twitter

Election 2017
Policy analysis from the Centre for Economic Performance
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.