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ISER Working Paper Series 2012-08

Why did Britain’s households get richer? Decomposing UK household income growth between 1968 and 2008–09


Publication date

31 Mar 2012


 Average real UK household income has almost doubled over the past forty years.
With four decades of micro-data on household incomes, and relatively simple
decomposition methods, we document the contribution to this growth in the mean net
household income of working-age households from different income sources, and
break down further changes in employment income by household member and into
separate participation, hours and hourly wage effects. We also perform such analyses
for the mean income of the richest working-age households, and among a group
defined by having a low household income but a strong connection to the labour


Income Dynamics, Wages And Earnings, and Household Economics

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