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Spatial labour market inequality and social protection in the UK

Pawel Bukowski, Mark Fransham and Neil Lee


Spatial inequality in economic outcomes is increasingly seen as a problem for national economies. This paper considers spatial inequality in the UK labour market, its causes, and potential policy solutions. Relative to other European countries, the UK is highly spatially uneven, but it is not as unequal as the United States. The most common explanations for growing spatial inequality are economic, in particular the linked processes of manufacturing decline, the rise in knowledge-based services, and London?s growth as an international service hub. However, these explanations ignore the importance of spatial labour market institutions on different local economies. In this paper we argue that labour market institutions are one of the key missing explanations for the changing patterns of spatial inequality in the UK, and that the impact of labour market policy is likely to dwarf the limited funding provided for local economic development policy. We conclude with some suggestions for how policy might better address spatial labour market inequality in the UK and start to create good jobs across the country.


1 March 2024


LSE Public Policy Review 3(2) , pp.1-11, 2024


DOI: 10.31389/lseppr.99

https://ppr.lse.ac.uk/articles/10.31389/lseppr.99

This Journal article is published under the centre's Labour programme, Urban programme.

This publication comes under the following theme: Labour market inequalities: Causes and cures, What determines urban growth and urban decline and what should be the role of policy?