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Evidence on the Development of Inequalities Across the Life-cycle

Evidence on the Development of Inequalities Across the Life-cycle. 25 June 2009 Park Plaza County Hall London. Evidence on the Development of Inequalities Across the Life-cycle. Welcome and introduction. Polly Toynbee. 25 June 2009 Park Plaza County Hall London.

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Evidence on the Development of Inequalities Across the Life-cycle

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  1. Evidence on theDevelopment of Inequalities Across the Life-cycle 25 June 2009 Park Plaza County Hall London

  2. Evidence on the Development of Inequalities Across the Life-cycle Welcome and introduction Polly Toynbee 25 June 2009 Park Plaza County Hall London

  3. Evidence on the Development of Inequalities Across the Life-cycle Introduction: Aims of the National Equality Panel John Hills Chair, National Equality Panel 25 June 2009 Park Plaza County Hall London

  4. National Equality Panel: Objective To write an independent report which shows the relationships between: Inequalities in educational outcomes, employment, earnings, individual incomes, household incomes, and wealth And: Gender, age, ethnicity, religion, disability status, sexual orientation, social class, housing tenure, and area/neighbourhood Note:this is focused on economic outcomes, a narrow partof the overall range of equalities being considered by EHRC, for instance, but one which feeds into others

  5. National Equality Panel: Issues What do overall inequalities in economicoutcomes look like to day? How have these changed over time, and howdo they compare internationally? Where are people with different characteristics/ backgrounds located within the distributions? What are the key interactions between different characteristics / backgrounds? How do differences develop over people’s life-cycles? What are the key implications for the development of policy?

  6. National Equality Panel: Activities Panel started work in Oct 2008 Evidence-collecting visits to government departments, devolved administrations and academic institutions,Nov 2008 – June 2009 Stakeholder responses to call for evidence Stakeholder seminar in March and follow-up today Analysis by government departments and secretariat of national survey data Commissioned research on particular topics (nine projects, to be completed by September – will be on NEP website) Report to be submitted by end November 2009 Report to be published by end of January 2010

  7. Education outcomes, eg. GCSE point score distributions (and devolved equivalents) and adults’ highest qualification Employment status Hourly earnings Individual incomes Household incomes Wealth Where (percentile points) in the overall distributions are peoplefrom different population subgroups found? What does spread within sub-groups look like? Detailed breakdowns of positions of sub-groups(eg by gender and age gender and ethnicity, etc) Descriptive analysis from government departments and secretariat

  8. Example 1:Shape of overall income distribution 2006-07

  9. What do overall inequalities in education, employment, earnings, individual incomes, household income, wealth look like? (inc. time trends and international comparison) What is the position of different groups in the distribution? How do combinations of characteristics affectpeople’s positions? What do we know about penalties associated with particular characteristics allowing for other factors? How do differences evolve across the life course? What do we know about intergenerational links insocio-economic position? What are key implications for policy development? Questions to be examined in report

  10. How do differences between groups develop across the life cycle? What are the most important processes that drive these changes at different life stages affecting particular groups? Are those processes changing over time? Will they be different for younger generations as they enter and move through the labour market, etc? Issues for today

  11. Evidence on the Development of Inequalities Across the Life-cycle Inequalities Across the Life CourseIntergenerational links and pre-school years :Some key evidence John Hills National Equality Panel Chair 25 June 2009 Park Plaza County Hall London

  12. Intergenerational links • The economic outcomes of children remain strongly linked to the position of their parents • These links could be looked at in three ways: • By parents’ social class, measured by occupation • By parental income when in childhood • By parents’ education • Each of these could be looked at in two ways: • In absolute terms: how does child’s outcome compare with parents? • In relative terms: how does child’s position in ranking of outcomes compare with parents? • We only have evidence on trends in three of the potential six comparisons. They show different patterns.

  13. Intergenerational mobilityin terms of social class The proportion of British men getting better jobs than their parents (absolute social mobility) was around the European average in the 1970s, 1980s and 1990s But the proportion of British women getting better jobs than their parentswas relatively low in the 1980s and 1990s The proportion of men changing occupational class compared to their parents appears flatcomparing generations of adults since the 1970s, as does that of women.

  14. But links between the relative incomes of children and their parents appear to have strengthened between those born in 1958 and 1970 Source:Blanden and Machin (2007). Figures are for Great Britain

  15. ... and links between parents’ incomes and children’s education remain wide Source:Blanden and Machin (2007). Figures are for Great Britain

  16. Internationally, low intergenerational mobility appears linked to income inequality(sons of low earning fathers also with low earnings, %) Source:Jäntii et al (2006) and LIS.

  17. Intergenerational immobilityappears linked to income inequality(sons of low earning fathers also with low earnings, %) Source:Jäntii et al (2006) and Luxembourg Income Study.

  18. Cementing factorsin a more unequal society Income and neighbourhood Neighbourhood and labour market Neighbourhood and schools (with house price premium on good schools) Parental education/income and qualifications Better-paid partnering better-paid What goes on in early years and later childhood

  19. Indicators of school readiness by income group: UK Source: Elizabeth Washbrook, Bristol University (based on Millennium Cohort Study and joint work with Jane Waldfogel)

  20. Part of the explanation lies in links between parents’ economic position and other factors affecting development Source:Institute for Fiscal Studies from Millennium Cohort Study.

  21. Foundation Stage Profile Mean Scoresby Characteristics (England) Source:Hansen and Jones (2008), table 7.2. Each six months older a child was at the date of assessment was linked to an increase of 8 in their mean score

  22. Impact of child and family characteristicson Foundation Stage Profile (England) – allowing for all factors together Source:Kirstine Hansen, Institute of Education, from Millennium Cohort Study

  23. So there does not appear to be any weakening in the way in which social class is linked to different trajectories for children apparently starting at the same position Source:Cabinet Office (2008), from Feinstein (2003) and Blanden and Machin (2007).

  24. Evidence on the Development of Inequalities Across the Life-cycle Pre-school years Professor Jane Waldfogel Columbia University, New York 25 June 2009 Park Plaza County Hall London

  25. Evidence on the Development of Inequalities Across the Life-cycle Inequalities Across the Life Course: School YearsSome key evidence Ruth Lupton National Equality Panel Member 25 June 2009 Park Plaza County Hall London

  26. Inequalities Across the Life Course:School Years Some key evidence Ruth Lupton Member, National Equality Panel NEP Stakeholder Seminar Park Plaza County Hall, 25 June 2009

  27. 5 or more GCSEs at grades A* to C by social class Source: DIUS (2008)

  28. Free School Meal (FSM) attainment gap at different stages Source: DCSF (2009)

  29. The role of prior attainment on HE participation by gender, England Source: DIUS (2008)

  30. The role of prior attainment on HE participation by FSM, England Source: DIUS (2008)

  31. No gap in HE participation by FSM conditional on A level score 25% of richest get top A levels 3% of poorest get top A levels 45% of richest 84% of poorest Source – IFS

  32. Percentage attaining 5 GCSEs A*-C by social class 1989-2006 Source: Youth Cohort Study

  33. Percentage attaining 5 GCSEs A*-C by Free School Meal 2002-2008

  34. (Young)Participation in Higher Education by Social Class 2002/3-2006/7

  35. Percentage of 16 year olds not in education, employment or training, by GCSE attainment Source: LSYPE Wave 4 and YCS C13, S1

  36. Median GCSE points scoreby ethnic group 2008

  37. Percentage of pupils obtaining 5 or more GCSE A*-C, by main ethnic groups, 1997-2007 Source: Phillips (2009

  38. The role of prior attainment on HE participation by ethnicity, England Source: DIUS (2008)

  39. What causes these inequalities and drives these trends? • Some factors: • Poverty and material deprivation • Cultural differences, aspirations, family educational practices • Peers, neighbourhoods • Schools, colleges and universities: resources, admissions policies, attitudes and practices of staff • The education system: values, curriculum, pedagogy and assessment

  40. The policy environment Not the panel’s job to make specific policy recommendations, but what do these data tell us about areas which need further policy attention? • Schools: • Quality, diversity and choice • Mainstream funding, class sizes, teaching ratios • Additional help for individuals • Curriculum, testing • Working with families and communities • 16-18: • Financial help and other support for staying on • Curriculum/qualifications • Universities: • Grants and fees • Widening participation

  41. Evidence on the Development of Inequalities Across the Life-cycle School years Professor Geoff Whitty Institute of Education 25 June 2009 Park Plaza County Hall London

  42. Evidence on the Development of Inequalities Across the Life-cycle Inequalities Across the Life CourseWorking Age: Some key evidence Mike Brewer National Equality Panel 25 June 2009 Park Plaza County Hall London

  43. Inequalities Across the Life CourseWorking Age:Some key evidence Mike Brewer (Institute for Fiscal Studies) National Equality Panel NEP Stakeholder Seminar Park Plaza County Hall, 25 June 2009

  44. Outline Will examine differences in employment and earnings by • Age and gender • Motherhood? • Ethnicity, religion and gender • Disability and gender Nothing on income inequality Terminology • “gap” is raw difference in employment rates or hourly pay between two groups (say men and women) • “penalty” is difference in employment rates or hourly pay between two groups having controlled for other factors (age, education, occupation, region of country, etc)

  45. Age and gender

  46. Employment by Age, Male, UK Source – NEP, 2008/09 on LFS

  47. Employment by Age, Female, UK Source – NEP, 2008/09 on LFS

  48. Age-earnings profile Source: LFS 2006–2008 at 2008 prices. Coverage: UK, all individuals

  49. Age-earnings profile, private and public sector by educational group, men Source – Disney et al, IFS WP 17/07

  50. Age-earnings profile, private and public sector by educational group, Women Source – Disney et al, IFS WP 17/07

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