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Economic inequality in Wales

Author: Rhys Davies
Institution: Wales institute of Social & Economic Research (WISERD)
Type of case study: Research

About the research

The research provides the first examination of inequality within a devolved nation of the UK and will form the basis of future research that explores inequality in Wales in greater detail.

The research was commissioned by the Equality and Human Rights Commission in Wales to address the lack of regional information on inequality. The results will be available to the new government in Wales and allow them to design policies to deal with poverty and inequality based on sound, well-researched evidence.

The APS, which includes data derived from the LFS and additional responses provided by a Welsh government-funded boost to the LFS, was the key source of information used in the analysis of education, employment and earnings. This was supplemented by data from other surveys in order to provide a picture of income, poverty and wealth in Wales. The analysis consisted of descriptive and multivariate (regression) analysis. Many years of data from these surveys were merged together to provide sufficient sample sizes to support the analysis.

The research report found that the inequalities that existed between groups in the UK were also present in Wales, however Wales exhibits lower levels of overall earnings and income inequality as a result of the relative absence of highly paid private sector employment.

Methodology

The main source of data used in the report was that derived from the Annual Population Survey. This was supplemented by data from other surveys in order to provide a picture of income, poverty and wealth in Wales. The analysis consisted of descriptive and multivariate (regression) analysis. Multiple years of data from these surveys were merged together in order to provide sufficient sample sizes to support the analysis.

Publications

The full report, An Anatomy of Economic Inequality in Wales, and other materials are now available.