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Inequality, Redistribution and Recession: The British Experience, 1976–1982*

Published online by Cambridge University Press:  20 January 2009

Michael O'higgins
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Abstract

The combination of economic recession and political reaction — which might be expected to lead to an increase in inequality — has been accompanied in the United Kingdom by an intellectual critique of the egalitarian impact of social welfare provision. This paper examines the pattern and trend of inequality and redistribution in recent years in the light of these economic, political and intellectual pressures. The paper demonstrates that inequality has increased since 1976 and that the increase has been more marked since 1979. The main factor causing this increase was the less equal distribution of market incomes, a major effect of the recession. Tax changes were a secondary factor, whilst changes in social benefit programmes had little effect. While social spending did not bring about greater overall equality, it combated and significantly modified the pressures towards greater inequality. The impact of recession is particularly apparent in the changing composition of the bottom of the income distribution: the elderly are being replaced by the unemployed as the inhabitants of the lowest levels of economic welfare.

Type
Articles
Information
Journal of Social Policy , Volume 14 , Issue 3 , July 1985 , pp. 279 - 307
Copyright
Copyright © Cambridge University Press 1985

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