Industry Skill Differentials and the Impact of Changing Industry Structure on Aggregate Skill Differentials in Britain 1970‐1982

Industry studies suggest that since 1945 there have been both contractions and expansions in the earnings differentials of skilled and semi‐skilled workers. Unpublished data from the New Earnings Survey for Britain enables further detailed study of these differentials to be made. Changes in the distribution of employment were a less significant contributor to changes in male earnings differentials than were changes in differentials which took place within each industry. For females it is shown that similar differential narrowing took place but changes in the rankings of industries by pay level were also influential.