Labour market inequalities amongst UK-born university graduates: What drives wage differentials between ethnic groups?

Research output: Contribution to conferenceAbstract

Abstract

In light of the reignited debate in the media about earnings inequalities amongst ethnic groups, this study examines whether UK-born university graduates from “Black/African/Caribbean/Black British”, “Pakistani” and “Bangladeshi” backgrounds experience ethnic penalties in the UK labour market. I draw on data from the Annual Population Survey (2013-2017), which is recently enriched by information allied to Higher Education (subject area of First degree and type of institution attended). I provide strong evidence that wage inequalities persist even after allowing for differences in Higher Education characteristics, demographic traits and job-related factors. Wage gaps are more pronounced amongst men (-13.5%) than women (-3.9%), but they remain within most sub-groups of employees. Using a decomposition technique, I find that characteristics associated with the employees’ occupation and industry sector account for nearly all of the earnings differential related to the observed covariates.
Original languageEnglish
Publication statusPublished - 2019

Keywords

  • Ethnic differences
  • Wage gaps
  • Employees
  • UK
  • University graduates
  • Discrimination
  • labour market
  • Ethnic minorities

Cite this

@conference{c5d5b04637ea492891f49895957d00b2,
title = "Labour market inequalities amongst UK-born university graduates: What drives wage differentials between ethnic groups?",
abstract = "In light of the reignited debate in the media about earnings inequalities amongst ethnic groups, this study examines whether UK-born university graduates from “Black/African/Caribbean/Black British”, “Pakistani” and “Bangladeshi” backgrounds experience ethnic penalties in the UK labour market. I draw on data from the Annual Population Survey (2013-2017), which is recently enriched by information allied to Higher Education (subject area of First degree and type of institution attended). I provide strong evidence that wage inequalities persist even after allowing for differences in Higher Education characteristics, demographic traits and job-related factors. Wage gaps are more pronounced amongst men (-13.5{\%}) than women (-3.9{\%}), but they remain within most sub-groups of employees. Using a decomposition technique, I find that characteristics associated with the employees’ occupation and industry sector account for nearly all of the earnings differential related to the observed covariates.",
keywords = "Ethnic differences, Wage gaps, Employees, UK, University graduates, Discrimination, labour market, Ethnic minorities",
author = "Konstantinos Kollydas",
year = "2019",
language = "English",

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T1 - Labour market inequalities amongst UK-born university graduates: What drives wage differentials between ethnic groups?

AU - Kollydas, Konstantinos

PY - 2019

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N2 - In light of the reignited debate in the media about earnings inequalities amongst ethnic groups, this study examines whether UK-born university graduates from “Black/African/Caribbean/Black British”, “Pakistani” and “Bangladeshi” backgrounds experience ethnic penalties in the UK labour market. I draw on data from the Annual Population Survey (2013-2017), which is recently enriched by information allied to Higher Education (subject area of First degree and type of institution attended). I provide strong evidence that wage inequalities persist even after allowing for differences in Higher Education characteristics, demographic traits and job-related factors. Wage gaps are more pronounced amongst men (-13.5%) than women (-3.9%), but they remain within most sub-groups of employees. Using a decomposition technique, I find that characteristics associated with the employees’ occupation and industry sector account for nearly all of the earnings differential related to the observed covariates.

AB - In light of the reignited debate in the media about earnings inequalities amongst ethnic groups, this study examines whether UK-born university graduates from “Black/African/Caribbean/Black British”, “Pakistani” and “Bangladeshi” backgrounds experience ethnic penalties in the UK labour market. I draw on data from the Annual Population Survey (2013-2017), which is recently enriched by information allied to Higher Education (subject area of First degree and type of institution attended). I provide strong evidence that wage inequalities persist even after allowing for differences in Higher Education characteristics, demographic traits and job-related factors. Wage gaps are more pronounced amongst men (-13.5%) than women (-3.9%), but they remain within most sub-groups of employees. Using a decomposition technique, I find that characteristics associated with the employees’ occupation and industry sector account for nearly all of the earnings differential related to the observed covariates.

KW - Ethnic differences

KW - Wage gaps

KW - Employees

KW - UK

KW - University graduates

KW - Discrimination

KW - labour market

KW - Ethnic minorities

M3 - Abstract

ER -