The Geography of Wage Inequality in British Cities

There is widespread concern about the scale and implications of urban inequality in Great Britain, but little evidence about which cities are the most unequal and why. This paper investigates patterns of wage inequality in 60 British cities. It has two principal goals: (1) to describe which cities are most unequal; and (2) to assess the important determinants of inequality. The results show a distinct geography of wage inequality: the most unequal cities tend to be affluent and located in parts of the Greater South East of England. A central determinant of these patterns is the geography of highly skilled workers. Because of this, the geography of urban wage inequality reflects the geography of affluence more generally.