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Yaojun LiInstitute for Social Change
Manchester UniversityEmail: [email protected]
Labour market earnings of minority ethnic groups in Britain
(1972-2005) For presentation at Conference on Ethnic Differences
Manchester University4 March, 2008
2
Theories on ethnic differences and ethnic socio-economic integration
Ethnic stratification (social distance theories)
Returnee (no difference)
Invisible (some historical-cultural differences)
Visible (skin colour, language, former colonial connections)
Sources of differences Demographic Age, family structure, children, health
and caring Socio-cultural Human capital (language fluency; foreign
education; knowledge of local LM) Social capital (community structure:
bridging ties with entrepreneurs within or with mainstream community for jobs)
People skills (dealing with people, symbols and paper)
Discrimination Statistical/direct/indirect Contact->less intolerance Conflict->hyper-cyclical Frames of reference 1stg (lengths of stay) 2ndg (revolutionalising aspirations) (generation, life cycle, and period effects: catching up?)
Outcomes Employment Class Earnings
3
Data: GHS/LFS (1972/2005)• GHS: from 1972 annual except 1998 and 2000• LFS: 1983 onwards, panel (5 waves, 4 seasons) 1992 onwards• Income: 1992 winter -> 1996 winter (Wave 5 only); 1997 spring onwards, Waves 1
and 5, but W1 used as it is face-face interview, same as in GHS
Structure 1992 Spring onwards Year (eg) 2000 2001 2002 2003 2004 Season Sp Su Au Wi Sp Su Au Wi Sp Su Au Wi Sp Su Au Wi Sp Su Au Wi Wave 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4
4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3
3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2
2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1
4
Standardised variables storage display value
variable name type format label variable label----------------------------------------------------------------------------------------------------------------------------------------• age int %8.0g age• sex byte %8.0g sex sex• region byte %19.0g region * Region: COT• marital3 byte %11.0g marital3 Marital status: COT• econst3 byte %10.0g econst3 Economic status: COT• workhrs double %9.2f workhrs total work hours• class5 byte %16.0g class5 * Classes: E-G92: COT• edcot6esds byte %9.0g edcot6esds Education: ESDS COT: 6cat• ethcot9 byte %9.0g ethcot9 Ethnic groups: COT• ndpch16 byte %9.2f • payweek float %9.2f • limitill byte %9.0g • gdp_gva float %9.0g * • agefted byte %9.0g • age2uk byte %9.0g Age coming to UK• gen3 byte %14.0g gen3 G status: f born+age to UK• pcbmeregion float %9.0g % BME by year by region
• And many others!N= 4,722,601 for the pooled data (GHS/LFS 1972-2005)N= 2,771,469, 25.9% reported earnings (N=716,884), for men (aged 16-64) and women (16-59) in GB
5
Theme of talk: ethnic catching up?
• Patterns and trends of earnings by sex• Patterns and trends of earnings by male
ethnic minority groups• Patterns and trends of earnings by female
ethnic minority groupsFocusing on 1997-2005• Preferred techniques of analysis: OLS,
Heckman, Multilevel?• Main findings, discussion and conclusion
6
010
020
030
040
050
060
0W
eekl
y e
arn
ings
(£)
1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005Year
Men Women
Gross weekly earnings (£) from the labour market
7
010
020
030
040
050
060
0W
eekl
y e
arn
ings
(£)
1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005Year
W British W Irish
W Other B Caribbean
B African Indian
Pak/Bang Chinese
Male gross weekly earnings (£) from the labour market
8
010
020
030
040
050
060
0W
eekl
y e
arni
ngs
(£)
1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005Year
W British W Irish
W Other B Caribbean
B African Indian
Pak/Bang Chinese
Female gross weekly earnings (£) from the labour market
9
Table Mean and standard deviation of gross weekly earnings by ethno-generational status and by sex in 1997-2005 Men Women mean sd N mean sd N W British 426.11 295.52 143,074 244.48 197.86 146,172 1stg W Irish 488.47 355.46 786 312.50 226.53 981 1stg W Other 554.90 452.86 3,362 330.31 267.44 3,950 1stg B Caribbean 345.02 193.50 399 279.42 161.04 551 1stg B African 367.19 272.87 748 271.61 160.45 782 1stg Indian 434.55 311.73 1,549 265.59 204.57 1,339 1stg Pakistani/Bangladeshi
255.99 222.84 965 194.54 173.63 255
1stg Chinese 409.16 356.48 265 306.55 264.84 328 1stg Other 400.86 340.87 1,539 287.64 215.14 1,436 2ndg W Irish 417.98 277.78 172 273.22 300.01 193 2ndg W Other 480.42 332.10 1,718 278.38 228.05 1,751 2ndg B Caribbean 387.65 254.74 663 296.00 185.98 938 2ndg B African 331.85 271.64 173 304.86 191.61 170 2ndg Indian 417.36 371.32 910 284.12 215.93 955 2ndg Pakistani/Bangladeshi
310.25 265.28 551 213.87 153.02 497
2ndg Chinese 388.66 375.40 91 306.76 256.53 96 2ndg Other 406.62 317.51 869 290.53 224.90 1,092 All 427.18 302.00 157,904 249.13 201.45 161,562
10
Ethnic minorities have different Disadvantage-Inducing Factors (DIFs)
Table 1 Main characteristics of ethnic groups (N=2,651,837) % of
population % employed
% unemployed
% inactive
% no quals
% partnered
% long-term ill
Years in labour market
No. of dependent children
Ethnicity W British 90.1 72.5 6.2 21.3 30.5 64.1 13.9 20.6 0.7 1stg W Irish 0.8 67.9 7.4 24.8 47.2 67.3 19.1 27.6 0.7 1stg W Other 1.9 68.7 5.5 25.8 21.4 66.6 10.9 21.5 0.7 1stg B Caribbean 0.5 68.3 10.7 21.1 47.4 58.4 18.0 27.3 0.9 1stg B African 0.4 52.9 11.4 35.7 17.2 54.8 11.1 16.9 1.1 1stg Indian 1.1 65.2 7.5 27.3 37.9 73.9 16.0 22.6 1.2 1stg Pakistani/Bangladeshi 0.8 37.7 10.5 51.9 59.6 73.8 22.2 21.0 2.1 1stg Chinese 0.2 58.9 4.7 36.4 30.2 62.4 7.0 18.7 0.8 1stg Other 0.7 56.6 7.8 35.6 22.4 64.9 12.5 19.4 0.9 2ndg W Irish 0.2 69.0 7.7 23.3 42.7 68.7 15.3 23.4 0.9 2ndg W Other 1.0 72.5 6.5 21.0 16.7 61.4 10.1 16.2 0.8 2ndg B Caribbean 0.5 59.9 14.9 25.1 20.4 44.1 9.9 10.9 0.9 2ndg B African 0.1 54.9 12.5 32.6 13.7 49.8 8.2 9.6 0.8 2ndg Indian 0.5 57.9 8.5 33.6 16.5 56.9 6.9 8.2 1.0 2ndg Pakistani/Bangladeshi 0.4 39.5 11.8 48.7 26.9 54.9 9.8 6.9 1.5 2ndg Chinese 0.1 54.3 6.5 39.3 12.7 52.5 5.5 7.5 0.6 2ndg Other 0.8 65.8 9.2 25.0 26.9 52.2 10.5 11.8 0.9
All 100.0 71.5 6.4 22.2 30.5 64.0 13.9 20.5 0.8 Notes:
1. For men aged 16-64 and women aged 16-59 resident in Great Britain, Chinese before 1986 omitted (same below). 2. 2nd generation ethnic minority groups refer to those who were born in or who came to the UK by the age of 5. 0.26% of White British
were born overseas but are not separately coded, that is, they are coded as the ‘White British’ (same below). Source: The pooled GHS/LFS (1972-2005) (same below).
11
Geography makes a difference
133.1
115.9108.2
96.0 93.6 92.6 91.3 89.6 88.179.3 78.8
020
40
60
80
10
012
014
016
0U
K v
alu
e s
et
at 1
00 e
ach
ye
ar
GDP/GVA (1997-2005)
GDP and DVA data obtained from ONS sources
12
28.7
10.3
6.4 6.2 5.54.7 4.6
2.2 2.2 2.1 1.9
05
10
15
20
25
30
Eth
nic
densi
ty (
%)
Ethnic density: 1997-2005
Ethnic density refers to % of minority ethnic groups per year per region.
Geography makes a difference
13
Geography makes a differences
• -------------------------------------------------------• Region | Ethnic density GDP/GVA• -----------------------+-------------------------------• 1. North | 2.21 79.32 • 2. Yorks,Humberside | 6.40 88.08 • 3. North West | 5.55 89.64 • 4. East Midland | 6.17 92.55 • 5. West Midlands | 10.27 91.31 • 6. East Anglia | 4.71 108.25 • 7. Greater London | 28.73 133.12 • 8. South East excl GLC | 4.65 115.88 • 9. South West | 2.16 93.60 • 10. Wales | 2.11 78.84 • 11. Scotland | 1.85 95.99
• | ethdensity gdp_gva• -------------+------------------• ethdensity | 1.0000 • gdp_gva | 0.7116 1.0000
14
Multilevel analysis:
Weekly earnings = Ethnicity/Generation + Years in LM + Years in LM squared + Education + Marital status + Limiting long-term illness + No. of dependent children under 16 + Ethnicity/Generation*Years in LM + Ethnicity/Generation*Education + Ethnicity/Generation*Year of survey + Ethnic density + GDP/GVA || Region: Ethnic density + GDP/GVA This is done for men and women separately
15
Predicted values for men: by ethno-generational status
491.76 484.27
411.72
325.08
288.96
227.65
190.63
050
10
015
020
025
030
035
040
045
050
0W
eekl
y e
arn
ings
(£)
Predicted weekly earnings for 1st generation men
For married men with secondary education and 10-15 years' LM experience (1997-2005): WB=379.37%.
16
Predicted values for men: by ethno-generational status
492.21
385.78
359.73
332.32 329.98305.59
286.54
050
10
015
020
025
030
035
040
045
050
0W
eekly
earn
ings
(£)
Predicted weekly earnings for 2nd generation men
For married men with secondary education and 10-15 years' LM experience (1997-2005): WB=379.37%.
17
Predicted values for men: by years in the LM0
10
020
030
040
050
060
070
0W
eekl
y e
arn
ings
(£)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48Years in the labour market
W British W Irish W Other
B Caribbean B African Indian
Pak/Bang Chinese
Predicted weekly earnings for 1st generation men
For married men with secondary education (1997-2005).
18
Predicted values for men: by years in the LM0
10
020
030
040
050
060
070
0W
eekly
earn
ings (
£)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48Years in the labour market
W British W Irish W Other
B Caribbean B African Indian
Pak/Bang Chinese
Predicted weekly earnings for 2nd generation men
For married men with secondary education (1997-2005).
19
Predicted values for men: by educational qualifications0
10
020
030
040
050
060
070
080
0W
eekly
earn
ings (
£)
No qualNo qual PrimaryNo qual Primary O LevelNo qual Primary O Level A LevelNo qual Primary O Level A Level DegreeNo qual Primary O Level A Level Degree Hi DegEducational qualifications
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 1st generation men
For married men with 10-15 years' experience in the labour market (1997-2005).
20
Predicted values for men: by educational qualifications
010
020
030
040
050
060
070
080
0W
eekl
y e
arn
ings
(£)
No qualNo qual PrimaryNo qual Primary O LevelNo qual Primary O Level A LevelNo qual Primary O Level A Level DegreeNo qual Primary O Level A Level Degree Hi DegEducational qualifications
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 2nd generation men
For married men with 10-15 years' experience in the labour market (1997-2005).
21
Predicted values for men: by time of survey0
10
020
030
040
050
060
070
0W
eekly
earn
ings (
£)
19971997 19981997 1998 19991997 1998 1999 20001997 1998 1999 2000 20011997 1998 1999 2000 2001 20021997 1998 1999 2000 2001 2002 20031997 1998 1999 2000 2001 2002 2003 20041997 1998 1999 2000 2001 2002 2003 2004 2005Year
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 1st generation men
For married men with secondary education and 10-15 years in the labour market.
22
Predicted values for men: by time of survey0
10
020
030
040
050
060
070
0W
eekly
earn
ings (
£)
19971997 19981997 1998 19991997 1998 1999 20001997 1998 1999 2000 20011997 1998 1999 2000 2001 20021997 1998 1999 2000 2001 2002 20031997 1998 1999 2000 2001 2002 2003 20041997 1998 1999 2000 2001 2002 2003 2004 2005Year
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 2nd generation men
For married men with secondary education and 10-15 years in the labour market.
23
Predicted values for women: by ethno-generational status
268.51 263.96249.17
209.15
190.26180.94
150.36
050
10
015
020
025
030
0W
eekl
y e
arn
ings
(£)
Predicted weekly earnings for 1st generation women
For married women with secondary education and 10-15 years' LM experience (1997-2005): WB=195.71%.
24
Predicted values for women: by ethno-generational status
248.97
229.17219.57
208.79 206.87 204.94
146.12
050
10
015
020
025
030
0W
eekl
y e
arn
ings
(£)
Predicted weekly earnings for 2nd generation women
For married women with secondary education and 10-15 years' LM experience (1997-2005): WB=195.71%.
25
Predicted values for women: by years in the LM
010
020
030
040
0W
eekly
earn
ings (
£)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45Years in the labour market
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 1st generation women
For married women with secondary education (1997-2005).
26
Predicted values for women: by years in the LM
010
020
030
040
0W
eekl
y e
arn
ings
(£)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45Years in the labour market
W British W Irish W Other
B Caribbean B African Indian
Pak/Bang Chinese
Predicted weekly earnings for 2nd generation women
For married women with secondary education (1997-2005).
27
Predicted values for women: by educational qualifications
010
020
030
040
050
0W
eekl
y e
arn
ings
(£)
No qualNo qual PrimaryNo qual Primary O LevelNo qual Primary O Level A LevelNo qual Primary O Level A Level DegreeNo qual Primary O Level A Level Degree Hi DegEducational qualifications
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 1st generation women
For married women with 10-15 years' experience in the labour market (1997-2005).
28
Predicted values for women: by educational qualifications
010
020
030
040
050
060
070
0W
eekly
earn
ings (
£)
No qualNo qual PrimaryNo qual Primary O LevelNo qual Primary O Level A LevelNo qual Primary O Level A Level DegreeNo qual Primary O Level A Level Degree Hi DegEducational qualifications
W British W Irish
W Other B Caribbean
B African Indian
Pak/Bang Chinese
Predicted weekly earnings for 2nd generation women
For married women with 10-15 years' experience in the labour market (1997-2005).
29
Predicted values for women: by time of survey
010
020
030
040
0W
eekl
y e
arn
ings
(£)
19971997 19981997 1998 19991997 1998 1999 20001997 1998 1999 2000 20011997 1998 1999 2000 2001 20021997 1998 1999 2000 2001 2002 20031997 1998 1999 2000 2001 2002 2003 20041997 1998 1999 2000 2001 2002 2003 2004 2005Year
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 1st generation women
For married women with secondary education and 10-15 years in the labour market.
30
Predicted values for women: by time of survey
010
020
030
040
0W
eekl
y e
arn
ings
(£)
19971997 19981997 1998 19991997 1998 1999 20001997 1998 1999 2000 20011997 1998 1999 2000 2001 20021997 1998 1999 2000 2001 2002 20031997 1998 1999 2000 2001 2002 2003 20041997 1998 1999 2000 2001 2002 2003 2004 2005Year
W British W Irish W Other B Caribbean
B African Indian Pak/Bang Chinese
Predicted weekly earnings for 2nd generation women
For married women with secondary education and 10-15 years in the labour market.
31
Summary• For men, 1stg differences are large, esp for B Carribbean, B African,
Pakistani/Bangladeshi and Chinese, showing grave effects of ethnic stratification of social distance; but 2ndg differences are much smaller, showing much social progress;
• 1stg Pakistani and 2ndg B African men showed great disadvantages over the life cycles; and B men earned much less at higher ends of edu;
• For women, similar storylines except that Pakistani/Bangladeshi women’s main disadvantages lie not in earnings, but in access to the labour market (Heath and Li 2008): highly educated P/B women earn as much as other women if they are in the labour market.
• Policy implications: Disadvantages/discrimination will not recede of its own accord; Gov. society must take concrete actions: How to get P/B men, esp. women to the LM is currently of great importance; equally important is the reduction of employer/societal discrimination against Black and Muslim community, Black men in particular (Business Commission on Race Equality for NEP, 2007, has many good suggestions)
