Has Increased Women's Educational Attainment Led to Greater Earnings Inequality in the United Kingdom? A Multivariate Decomposition Analysis

Abstract

It is widely believed that the growth in women's educational attainment and their increasing labour force participation, together with educational homogamy, will lead to greater inequality between households in their earnings. In this article, we use data from the United Kingdom to test that assertion. We use a new method of decomposing the change in household earnings inequality, and this allows us to identify effects associated with women's increasing educational attainment and consequential changes in their propensity to marry, in educational assortative mating and in labour-force participation. We find that changes in women's education and their behavioural consequences account for little if any of the growth in earnings inequality between households in the United Kingdom during the closing decades of the 20th century.