The National Living Wage and falling earnings inequality

Abigail McKnight and Kerris Cooper

Published 6 March 2020

The more generous National Living Wage replaced the National Minimum Wage for employees aged 25 and over in April 2016. In April 2020 it is due to increase to 60% of the average wage. In this policy brief we assess the impact of the National Living Wage in earnings inequality. We find that inequality in wages and weekly earnings have fallen further and faster than at least 1999 and most likely since the late 1970s.