In Episode 3 of Series 4 of the DIAL Podcast, we are in discussion with Richard Blundell. Richard is the Ricardo Professor of Political Economy at UCL, director of the ESRC Centre for the Microeconomic Analysis of Public Policy at the Institute for Fiscal Studies and the principal investigator of a DIAL project looking at human capital and inequality during adolescence and working life. In this episode we explore the work done by this project tackling inequalities in adolescence and working life.

Transcript

Christine Garrington 0:00

Welcome to DIAL a podcast where we tune in to evidence on inequality over the life course. In series four, we're looking at what's been learned from DIAL projects about how and when inequality manifests in our lives and what its longer-term consequences might be. For this episode, we're delighted to be joined by Richard Blundell, David Ricardo Professor of Political Economy at UCL, and director of the ESRC Centre for the Microeconomic Analysis of Public Policy at the Institute for Fiscal Studies. Richard is also the principal investigator of a DIAL project, looking at human capital and inequality during adolescence and working life. So welcome, Richard, thank you very much for joining us today.

Richard Blundell 0:40

Thank you, Christine.

Christine Garrington 0:41

I wonder if you can just start by telling us a little more specifically what this project has been investigating and why.

Richard Blundell 0:48

Yeah, I'd be delighted to. What we're looking at in this project is the evolution of inequality through adolescence and working life. Relating to the education streams, people choose how it affects their outcomes going forward into working life, what happens during working life, what kind of training seems to work, what routes to better jobs are for people who don't, for example, go to higher education, university. Whether training can offset some of the gender gaps that we've been seeing opening up in the labour market, and whether choices in higher education matter for future labour market outcomes. So it's very much about not the early years of school - there's another project looking at that, that runs in parallel with our project, similar investigators, we're working together with them. What we're looking at here then is from adolescence onwards, and how the inequality evolves during adolescence and working life.

Christine Garrington 1:58

So one area of focus has been women and work really very, very interested in in this, you've looked at the gender pay gap, the role of childcare, on women's ability to return to work, and indeed, on the role of job training, among other things. So what would you say for you are the key things to have emerged from this particular area of work Richard?

Richard Blundell 2:18

Yes, this is obviously absolutely central, the kind of pay gap between men and women and how it opens up through working life is something that's been really hard to tackle and getting behind this, what are the drivers of it, and how to address it is really key to solving some of the most important inequalities that we see in working life. We're working with researchers, mainly economists, and education researchers in Norway, in the UK and in France. That's rather good, because those three countries have rather different systems of routes through education, into work, and different opportunities for women and men as they progress through their working life. And we wanted to understand what those differences could tell us about the gender pay gap. And therefore what policies could be perhaps most useful in addressing the gender pay gap.

Christine Garrington 3:25

There are a couple of key things to come out of this one there.

Richard Blundell 3:28

Some of its, you know, in some sense, pretty obvious. That is that work experience is really important for pay and for earnings as you go through your career for career progression. And of course, when children come along, women spend a fair amount of time not in work, perhaps still in employment on maternity leave, but not actually gaining the work experience that turns out to be so important in career progressions. We've kind of known that. But it's become really acute, even part-time work is really not sufficient for women to keep up at work with their male colleagues. There are two kind of routes to addressing this. One is to provide good quality childcare, that can have two major benefits. One is it can provide good quality inputs and care for children, which is particularly important, especially in disadvantaged families. But it can also allow women to spend more time at work and developing their career profiles. There's also a very large importance of mothers and fathers spending time with their children. And so when children come along, it's kind of inevitable, really, that work may take second place, and that there'll be less time engaged in work experience in progression. And remember, it's exactly these years in the 20s and early 30s, where all the big career progression is made in working life, and women really fall behind there. So an alternative we've been looking at, and it turns out to be rather interesting is to work instead of on work experience, but on the human capital itself, once women come back into work.

Christine Garrington 5:25

So what might that look like in reality, then Richard?

Richard Blundell 5:27

So you can imagine the following scenario, a woman or a man, but unfortunately, it's particularly typically, the woman who takes time off, once she returns to work, you can imagine her engaging in a training programme, and that can make up some of the loss. Well, we weren't that optimistic about that to begin with. But we've become more optimistic for two reasons, particularly in the UK and in Norway. In Norway, using the Population Register, we can follow people, right the way through their working careers, we can follow the whole of the Norwegian population. It's an exhaustive data set on everything everybody does - their qualifications, where they're working, their family structure, and so on. And what we found is that it's particularly successful for women to who've had a child early on in their career to return to some kind of schooling qualifications, and that can have a big boost to their career profiles and address some of the gender gaps that occur. In the UK it turns out similarly, women who returned to work spend quite a bit of time in training. And we found that that training, work related on the job training, it has to be accredited, and it has to be work related, those things have a payoff. And we feel that there's real room for improving this type of training. It's all part of designing education and training routes, during your working career, that work much better than the ones we currently have. And boy in in the UK, we've been training way behind in the organisation of formal routes into education and training through your working life, especially for those who don't go to university.

Christine Garrington 7:29

Now, I want to move on to talk about COVID. And obviously, although not expected when your project began, the pandemic, obviously, as well as being a terrible thing for us all did provide, however, what I'm guessing was quite a fascinating and important opportunity to look at the impacts of COVID on on people's lives in this context of inequality. So what did you, what did you get to focus on there?

Richard Blundell 7:52

Once we were into the first major wave of COVID, it was clear that it was going to exacerbate a lot of the inequalities during adolescence, during education and during working life, let alone health of course. The longer run impact that we're seeing is on learning - the loss of learning, the loss of school time, the loss of engagement in learning, because of being not able to go to school, those children from deprived families have had much, much more learning loss over this period, than the privilege than children in more privileged families. It suddenly became clear that space was really important. But for learning for children, it was absolutely critical. If children didn't have a quiet place with good digital access, a good setup for engaging in online classes, then that already put them behind behind. And there's many studies showing there's a huge gradient in space, in digital access, in access to these kinds of technologies across the income and and socio economic gradient. Losses have been extremely large, up to half a year of schooling loss for many, many children. The second point is that if you're at home with educated parents, who are working from home and still have time to interact with you, you're going to get that input from them. schooling is the great equaliser. It puts children from deprived backgrounds in an environment where they can learn perhaps things that they couldn't learn at home. And that was taken away. The work on Norway and France shows exactly the same there. So learning loss, huge. This doesn't usually happen in recessions by the way. This was very, very specific to COVID.

Christine Garrington 9:55

And what about when you looked at matters related to work.

Richard Blundell 9:58

All on the job training, apprenticeships just didn't happen. In fact, for those in their early careers, you know - 18, 19, 20 - there was an almost complete end to apprenticeships. Apprenticeships fell back by 70% or more for that younger group, exactly the group that I was mentioning before. It's vital that we get th...