Commission on Living Standards

Resolution Foundation

Decoupling of Wage Growth and Productivity Growth? Myth and Reality

A closer look at the decoupling of wage growth and productivity growth: Pessoa and Van Reenen distinguish between 'gross' and 'net' decoupling and examine the trends of both in the US and the UK.

by João Paulo Pessoa and Professor John Van Reenen, February 2012


Priced Out: The new inflation and its impact on living standards

The great majority of households in Britain are currently experiencing a fall in the buying power of their incomes. Put simply, inflation is running around 5%, and few households have seen their incomes rise by this amount in the past year. This paper identifies new evidence that, because of a new inflation environment, hard times started significantly earlier for households on lower incomes than for the average UK household. Because the costs of essential goods and services have been rising much faster than standard rates of inflation for some time, households on modest incomes have fared far worse than official data suggests.

By Donald Hirsch, James Plunkett, Jacqueline Beckhelling, December 2011


Why did Britain’s households get richer? Decomposing UK household income growth between 1968 and 2008–09

IFS analysis for the Resolution Foundation

Average UK household income has almost doubled in real terms over the past forty years. This report asks ‘From where has the growth in household income come?’ and answers this by analysing the various factors that have contributed to this growth.

By Mike Brewer and Liam Wren-Lewis, December 2011