Comparing the New Earnings Survey (NES) and the Labour Force Survey (LFS): An analysis of the differences between the data sets and their implications for the pattern of geographical pay in the UK

Comparing the New Earnings Survey (NES) and the Labour Force Survey (LFS): an analysis of the differences between the data sets and their implications for the pattern of geographical pay in the UK, Regional Studies, 645-665. The Labour Force Survey (LFS) and the New Earnings Survey (NES) are the most widely used data sets for analysing pay in Britain. The paper details the key differences between the two and assesses the impact of their use for studying geographical wage differences. The pattern observed is sensitive to the differences in data sets, to differences in the sample populations, the questions asked about pay and working hours, and how hourly pay is measured. Recommendations are made on which data set should be used for what purposes as well as comments on the expected improvements that will result from the introduction of the Annual Survey of Hours and Earnings (ASHE).