This report quantifies the likely impact on the distribution of income (and in particular, measures of poverty and inequality) of projected changes in the structure of the labour market over this decade.

Politicians often say they want to see income inequality or poverty fall. The current fiscal climate, and the government's aim to eliminate the budget deficit mostly through spending cuts, constrain the scope for additional large-scale fiscal redistribution in the near future. It is therefore natural to ask what role labour market changes might play in the years ahead. With this in mind, work co-authored by IFS researchers and published today considers the likely impact of changes in the mix of jobs over the rest of this decade on typical measures of income poverty and income inequality.