Escaping the rural pay penalty: longitudinal analysis of rural/urban youth earnings in Britain

This article analyses the longitudinal effect of rural/urban migration on labour market outcomes for young people in Britain. It assesses how rural/urban origin and residential location affect career prospects by tracking earnings from youth (defined as aged under 25) into adulthood, using data from British Household Panel Survey waves 1-18. Earnings in rural areas are higher overall, although young people in rural areas are paid less than urban counterparts, and have been since 1993. While earnings increase at a quicker rate for those in rural locations, being from rural origin leads to slower wage growth. Respondents who ‘stay rural’ throughout the full observation period report lower earnings than all other groups.