Labour Market Economics: The Two Tier Jobs Market

A new report from the Resolution Foundation provides evidence for students and teachers on the deep structural divides between well paid and low paid jobs in the British labour market. According to a report in the Guardian "Today more than one in three people aged 16-30 (2.4 million) are low-paid, compared with one in five in the 1970s (1.7 million at that time)."

There are many causes of low pay and students who look at labour market economics will be expected to explore some of them as part of their course. Most of the jobs at risk of poverty pay are relatively low skilled, temporary, mainly non-unionised, often part-time and concentrated in service sector industries such as catering, caring, catering, cleaning and retail. What are the long term economic and social dangers from a deeply embedded two-tier labour market?

The campaign for an (optional) living wage continues to gather momentum. Businesses are being urged to pay employees at least £1 per hour more than the minimum wage in a bid to lift those on the lowest pay out of poverty.

Archbishop makes the case for a living wage

Boris Johnson argues for a living wage