Evaluating the pin money hypothesis: The relationship between women`s labour market activity, family income and poverty in Britain

Abstract

In this paper we evaluate the hypothesis that the over-representation of women amongst the low paid is of little importance because women`s earnings account for only a small proportion of total family income. Data from the General Household Survey (GHS), together with attitudinal evidence from three cross-sectional data sources, indicate that women`s earnings are in fact an important and growing component of family income. The majority of the growth in the share of women`s earnings occurs as a result of changing family labour structures; women`s earnings are playing an increasingly important role in keeping their families out of poverty. JEL classification: J16; J31.