Men in low paid part-time work increase four-fold

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Sharecast News | 13 Jan, 2017

One in five men on low hourly wages are currently working part time, driving up inequality in their pay, according to the Institute for Fiscal Studies (IFS).

Meanwhile, large proportions of middle and high wage men are in full-time employment, with only 1 in 20 in part time work.

Men aged 25 to 55 on an hourly rate of less than £7.60 are currently working on average five fewer hours a week than they did 20 years ago.

According to IFS’ research the trend of working class men in part-time work has been occurring for the last 20 years, far predating the 2008 financial crisis.

In contrast, the number of women in part time work has fallen, especially among those on low hourly wages. Women are increasingly enrolling into higher education giving them access to well paid full-time positions.

Jonathan Cribb, co-author of the report and a Senior Research Economist at IFS, said: “The number of low-wage men working part time has increased sharply over the last twenty years. To understand the drivers of inequality in the UK it is vital to understand the growing association between low hourly wages and low hours of work among men.”

One reason for this increase could be that more men could be voluntarily entering into part-time work.

Another is that men who have previously worked in low-paid but secure full-time jobs like manufacturing are being forced into less secure sectors like retail, wholesale and hospitality.

Income inequality for households has still risen as men remain the largest income source for households on average. The low income households had a rise in income of 20% between 1994-95 and 2014-15 compared to the top earners, who enjoyed a 32% rise in income over the same period.

Inequality in total net household incomes, including benefits and after taxes, across the majority of the population has however actually lowered compared to 20 years ago.

Chris Belfield, co-author of the report and a Research Economist at IFS, said: “In the last twenty years, the incomes of the top 1% have pulled further away from the rest. But across the vast majority of the population income inequality has actually fallen. However, in large part this is because the tax and benefit system has worked increasingly hard to offset disparities in the pay brought home by working households, and because of the catch-up of pensioners with those of working age, as well as falls in worklessness.”

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