How do Ethnic Minority Graduates Fare in the Labour Market? Simonetta Longhi Based on research done with Wouter Zwysen Institute for Social and Economic Research University of Essex

Who Are We Talking About? British graduates who self-identify with an ethnic minority background: Indian, Pakistani, Bangladeshi, Black African, Black Caribbean, Chinese Men and women analysed separately All graduated from UK universities and lived in England before entering university Data from the Destination of Leavers of Higher Education Survey (DLHE) Admin data collected when entering university and on university career Census survey 6 months after graduation for 2005-2012 cohorts Sample survey 3.5 years after graduation for 2005, 2007, 2009 cohorts

Is There a Problem? Ethnic minorities in the UK are on average Less likely to be employed than white British people Receive on average lower wages Are also more likely to go to university Is there an ethnic disadvantage in the early career of university graduates? Does ethnic background still matter for university graduates? How much of the difference is the result of background? (parents, area, university) How does the disadvantage evolve over the career?

Differences in Background Ethnic minorities Are more likely to go to less prestigious universities, get lower grades, study less rewarding (in the labour market) subjects Come disproportionately from lower parental background (lower skills, networks less useful to obtain graduate jobs) Are more likely to come from deprived areas (e.g. high unemployment rate, etc.) This may have an impact on labour market transitions, but does it explain ethnic differences?

Differences in the Probability of Having a Job Six Months After Graduation Compared to White British

Differences in Yearly Earnings Six Months After Graduation Compared to White British

Differences 3 ½ Years After Graduation Adjusted Gaps

Changes in Employment Probability

Changes in Earnings

Summary: Employment Six months after graduation we find employment gaps for all minority groups Men: smallest for Black Caribbean, largest for Chinese, Pakistani, Bangladeshi Women: smallest for Black Caribbean, largest for Bangladeshi Three and a half years after graduation: Men: improvement (smaller gaps) for all groups except Black African Women: improvement for Bangladeshi and Chinese, no improvement or worsening for Black Caribbean, Black African Trajectories: Increase in employment probability over time for all groups except Black African men and Black Caribbean women Differences among men are smaller than among women

Summary: Earnings Six months after graduation we find earning gaps (among men) only for Black Caribbean; (among women) Black Caribbean, Pakistani and Bangladeshi Three and a half years after graduation we find no earning gaps among men, and among women only for Black African Bangladeshi have the best earning trajectories, while Black African have the worst, but differences are not large

Does Background Explain Inequalities? Background does not explain differences in employment but explains most of the differences in earnings Area characteristics seem to be more important than parental background in explaining the gaps The impact of parental background is partly mediated by university (only for earnings) University tends to increase the gaps suggesting that minorities are not rewarded for their degree the same way as white British graduates are