catching up or falling behind? geographical inequalities ... · -£5,000 £0 £5,000 £10,000...

An IFS initiative funded by the Nuffield Foundation

Catching up or falling behind? Geographical inequalities in the UK and how they have changed in recent years

Sarthak Agrawal David Phillips

Catching up or falling behind? Geographical inequalities in the UK and how they have changed in recent years

Sarthak Agrawal and David Phillips

Copy-edited by Judith Payne

Published by

The Institute for Fiscal Studies

August 2020

ISBN 978-1-912805-59-4

An IFS initiative funded by the Nuffield Foundation

The Nuffield Foundation is an independent charitable trust with a mission to advance social well-being. It funds research that informs social policy, primarily in Education, Welfare, and Justice. It also funds student programmes that provide opportunities for young people to develop skills in quantitative and scientific methods. The Nuffield Foundation is the founder and co-funder of the Nuffield Council on Bioethics and the Ada Lovelace Institute. The Foundation has funded this project, but the views expressed are those of the authors and not necessarily the Foundation. Any errors and omissions are the responsibility of the authors. Visit www.nuffieldfoundation.org

Co-funding from the ESRC-funded Centre for the Microeconomic Analysis of Public Policy at IFS (grant number ES/M010147/1) is also very gratefully acknowledged.

Data from the Family Resources Survey were made available by the Department for Work and Pensions, which bears no responsibility for the interpretation of the data in this report.

60

70

80

90

100

110

120

130

140

150

160

170

180

GVA perperson

GVA per hourworked

Meanearnings

(workplace)

Meanearnings

(residence)

Medianearnings

(workplace)

Medianearnings

(residence)

Employmentrate

Mean BHCincome

Median BHCincome

Mean AHCincome

Median AHCincome

GDHI perperson

UK

= 1

00

London

South East

East

Scotland

South West

West Midlands

East Midlands

North West

Yorkshire & Humber

North East

Northern Ireland

Wales

40

60

80

100

120

140

160

180

200

220

Inde

x (U

K =

100)

10

12

14

16

18

20

22

24

26

28

30

2003 2005 2007 2009 2011 2013 2015 2017 2019

Stan

dard

dev

iati

on

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£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

-10

-5

0

5

10

15

20

InnerLondon

OuterLondon

Northerncore cities

Northern core cities’

FUAs

Southerncore cities

Southern core cities’

FUAs

Othernorthern

cities

Othernorthern

FUAs

Othersouthern

cities

Othersouthern

FUAs

Othernorthern

LAs

Othersouthern

LAs

Leve

l, 20

19

% c

hang

e

2002–07 2007–19 2002–19 Level in 2019

-£5,000

£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

£35,000

£40,000

-5

0

5

10

15

20

25

30

35

40

InnerLondon

OuterLondon

Northerncore cities

Northern core cities’

FUAs

Southerncore cities

Southern core cities’

FUAs

Othernorthern

cities

Othernorthern

FUAs

Othersouthern

cities

Othersouthern

FUAs

Othernorthern

LAs

Othersouthern

LAs

Leve

l, 20

18

% c

hang

e

2002–07 2007–18 2002–18 Level in 2018

-£10,000

£0

£10,000

£20,000

£30,000

£40,000

-4

0

4

8

12

16

Coastal towns Midlands & northern towns ‘Red wall’ Midlands & northern LAs All LAs excl. London All LAs

Leve

l, 2

018/

2019

% c

hang

e

2002–07 2007–latest year 2002–latest year Level in latest year