Ever since the financial crisis economists have been adamant that inequality isn’t rising, but a recent announcement from the Institute of Fiscal Studies (IFS) has reopened the debate.
When measured using the Gini coefficient – a statistical measure of inequality between households – inequality in Britain rose sharply during the 1980s but has plateaued since 2006. The story is largely similar for the earnings of the top 1 per cent and for wealth inequality. Across the piece, inequality rose sharply during the Thatcher years, and less sharply from then until 2006, before flattening after the financial crisis.
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