1. Yaojun Li Institute for Social Change Manchester University Email: Yaojun.Li@Manchester.ac.ukYaojun.Li@Manchester.ac.uk Labour market earnings of minority ethnic groups in Britain (1972-2005) For presentation at Conference on Ethnic Differences Manchester University 4 March, 2008

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3. 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

4. 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. 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 groups Focusing on 1997-2005 Preferred techniques of analysis: OLS, Heckman, Multilevel? Main findings, discussion and conclusion

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10. 10 Ethnic minorities have different Disadvantage-Inducing Factors (DIFs)

11. 11 Geography makes a difference

12. 12 Geography makes a difference

13. 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

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15. 15 Predicted values for men: by ethno-generational status

16. 16 Predicted values for men: by ethno-generational status

17. 17 Predicted values for men: by years in the LM

18. 18 Predicted values for men: by years in the LM

19. 19 Predicted values for men: by educational qualifications

20. 20 Predicted values for men: by educational qualifications

21. 21 Predicted values for men: by time of survey

22. 22 Predicted values for men: by time of survey

23. 23 Predicted values for women: by ethno-generational status

24. 24 Predicted values for women: by ethno-generational status

25. 25 Predicted values for women: by years in the LM

26. 26 Predicted values for women: by years in the LM

27. 27 Predicted values for women: by educational qualifications

28. 28 Predicted values for women: by educational qualifications

29. 29 Predicted values for women: by time of survey

30. 30 Predicted values for women: by time of survey

31. 31 Summary For men, 1 st g differences are large, esp for B Carribbean, B African, Pakistani/Bangladeshi and Chinese, showing grave effects of ethnic stratification of social distance; but 2 nd g differences are much smaller, showing much social progress; 1 st g Pakistani and 2 nd g 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 womens 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)