1. 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

2. 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 cohorts
Sample survey 3.5 years after graduation for 2005, 2007, 2009 cohorts

3. 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?

4. 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?

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

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

7. Differences 3 ½ Years After Graduation
Adjusted Gaps

8. Changes in Employment Probability

9. Changes in Earnings

10. 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

11. 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

12. 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