Dr Van Phan Van4.Phan@uwe.ac.uk
Research Fellow
Accounting for firms in ethnicity wage gaps throughout the earnings distribution
Phan, Van; Singleton, Carl; Bryson, Alex; Forth, John; Ritchie, Felix; Stokes, Lucy; Whittard, Damian
Authors
Carl Singleton
Alex Bryson
John Forth
Felix Ritchie Felix.Ritchie@uwe.ac.uk
Professor in Economics
Lucy Stokes
Damian Whittard Damian2.Whittard@uwe.ac.uk
Associate Professor in Policy & Practice in Economics
Abstract
Ethnicity wage gaps in Great Britain are large and have persisted over time. Previous studies of these gaps have been almost exclusively confined to analyses of household data, so they could not account for the role played by individual employers, despite growing evidence
of their wage-setting power. We study ethnicity wage gaps using high quality employer/employee payroll data on jobs, hours, and earnings, linked with the personal and family characteristics of workers from the national census for England and Wales. We show that firm-specific wage effects account for sizeable parts of the estimated differences between the wages of white and ethnic minority workers at the mean and other points in the wage distribution, which would otherwise mostly have been attributed to differences in individual
worker attributes, such as education levels, occupations, and locations. Nevertheless, there are substantial gaps between the wage structures of white and ethnic minority employees which cannot be accounted for by who people work for or other attributes, especially
among higher earners.
Citation
Phan, V., Singleton, C., Bryson, A., Forth, J., Ritchie, F., Stokes, L., & Whittard, D. (2022). Accounting for firms in ethnicity wage gaps throughout the earnings distribution
Publication Date | 2022-05 |
---|---|
Deposit Date | Oct 28, 2022 |
Keywords | Ethnicity wage gaps, Earnings distribution, Earnings, Decomposition methods, Unconditional quantile regression, Employer-employee data, UK labour market |
Public URL | https://uwe-repository.worktribe.com/output/10105451 |
Publisher URL | https://www.iza.org/de/publications/dp/15284/accounting-for-firms-in-ethnicity-wage-gaps-throughout-the-earnings-distribution |
Related Public URLs | https://docs.iza.org/dp15284.pdf |
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