Poverty and inequality in 2020: impact of changes in the structure of employment

Abstract

How will changes in the structure of employment and pay affect income inequality and poverty levels by 2020?
Projections suggest long-term labour market trends are set to continue. Examining the impact of these changes on income inequality and poverty levels, this study:

Forecasts a rise in income inequality and poverty levels.
Cites expected cuts in benefits and tax credits as a major cause of these rises.
Suggests the impact on the overall level of relative poverty and inequality forecast for 2020/21 made by changes imposed on employment and pay structures will be small.
Conducted at a time when the role of skills development in a reformed welfare-to-work policy environment is high on the policy agenda, and when job prospects for less qualified workers look likely to remain poor, this research is a timely contribution to a growing debate.