Summary of request
Disclaimer
These Research Outputs are NOT official statistics on earnings mobility. Instead, they are published as outputs from Office for National Statistics (ONS) feasibility research to improve its measurement of social mobility.
It is important that the information and research presented here be read alongside the outputs to aid interpretation and avoid misunderstanding. These outputs must not be reproduced without this disclaimer and warning note.
This work contains statistical data from ONS which is Crown Copyright. The use of the ONS statistical data in this work does not imply the endorsement of ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets, which may not reproduce exactly National Statistics aggregates.
As part of a paper submitted and being presented at the 35th International Association for Research in Income and Wealth conference 2018 (see for more information) a new linked dataset was produced to derive previously unpublished data into a graph.
The dataset uses newly available linked data from Department for Work and Pensions on Benefits and Pay as You Earn (PAYE) data on employee earnings, linked to the 2011 Census. More information can be found in the Annex to the linked publication on Inclusive Growth.
Notes
Comparing earnings for the lowest 20% of the earnings distribution from 2011 to 2015 gives us several categorisations. An individual can be identified as:
Experiencing wage progression (defined by at least a 20-percentile increase in the 2015 earnings distribution relative to 2011)
Not experiencing wage progression (defined by a less than 20 percentile increase, or even a decrease in the 2015 earnings distribution relative to 2011)
Unknown earnings progression, when those who start off in the bottom quintile have no earnings recorded in 2015 on the PAYE system. This could be for many reasons, including a switch to self-employment, unemployment, inactivity, migration, or death
Education level categorisations:
Level 1 qualifications = O levels/CSEs/GCSEs (any grades), Entry Level, Foundation Diploma, NVQ Level 1, Foundation GNVQ, Basic Skills / NVQ Level 1, Foundation GNVQ, Basic/Essential Skills
Level 2 qualifications = 5+ O levels (passes)/CSEs (grade 1)/GCSEs (grades A* - C), School Certificate, 1 A level / 2 – 3 AS levels/VCEs, Higher Diploma, NVQ Level 2, Intermediate GNVQ, City and Guilds Craft, BTEC First/General Diploma, RSA Diploma
Level 3 qualifications = 2+ A levels/VCEs, 4+ AS Levels, Higher School Certificate, Progression/Advanced Diploma, NVQ Level 3, Advanced GNVQ, City and Guilds Advanced Craft, ONC, OND, BTEC National, RSA Advanced Diploma
Level 4 and above qualifications = Degree (for example BA, BSc), Higher degree (for example MA, PhD, PGCE), NVQ Level 4 -5, HNC, HND, RSA Higher Diploma, BTEC Higher Level, Professional qualifications (for example teaching, nursing, accountancy), Apprenticeship
Other qualifications = Other vocational/work-related qualifications, Foreign qualifications / Qualifications gained outside the UK
The education level is split into ‘higher’, which is the level 4 category, and ‘not higher’, which is below a level 4 qualification.
The occupation is self-identified, but the categories are consistent with the Standard Occupational Classification 2010 (SOC 2010).
Distribution of earnings, age and education have been calculated based on 2011 data.
Those with missing values for the occupation variable are not captured in the graph.
Wage progressions have been calculated on 2015 data.
England and Wales only.
For 25 to 29 years old as captured in 2011.