Educational Pathways and the Cost-of-Living Crisis in the Liverpool City Region (LCR)

In the last decades, price inflation and cost of living crisis have been a recurring issue in the UK, with far-reaching implications for both individuals and society at large. Indeed, the increasing share of income ending up in essential goods and services directly impacts people's everyday lives. These variations disproportionately affect those already living in or at risk of poverty, increasing socioeconomic inequalities, and further reducing upward mobility. Moreover, the cost of living crisis may also impact educational access and students' performance: families facing financial hardship often struggle to afford quality education for their children, limiting their access to better education and job opportunities, thus perpetuating cycles of poverty. Additionally, the stress and uncertainty caused by financial instability can affect students' academic performance, hindering their ability to reach their full potential and develop higher skills.

Given its effects on individuals and society, this research project aims to uncover the undergoing relationship between cost of living variations, educational attainments and job opportunities and whether they trigger further spatial socio-economic inequalities. Indeed, using spatial analysis, we aim to identify geographical patterns of this relationship and possible areas for intervention for policy makers. We will employ two main administrative data sources: the Longitudinal Educational Outcomes (LEO) dataset, and the Wage and Employment Dynamics (WED) dataset.

In terms of outcomes, we expect to identify spatial models capable of explaining the determinants of these inequalities, find the areas where this problem is more diffused, and anticipate where and how the recent rise in prices will impact in both the short and long-run. For this reason, spatial regressions and clustering techniques will be applied to investigate the distribution of attainments over time. In addition, to provide insights into areas facing economic challenges, Liverpool City Region will be analysed as a case study, exploring the dynamics in both urban and non-urban settings.

Understanding these mechanisms is crucial for policy makers to formulate targeted interventions and to reduce barriers in accessing better education and employment, which are two pillars for equal opportunities. Indeed, more informed decisions can be made considering their spatial distribution and their relation to financial struggles.