The Role of the Workplace in Ethnic Wage Differentials

John Forth, Nikolaos Theodoropoulos and Alex Bryson

No 21-25, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: Using matched employer-employee data for Britain, we examine ethnic wage differentials among full-time employees. We find substantial ethnic segregation across workplaces: around three-fifths of workplaces in Britain employ no ethnic minority workers. However, this workplace segregation does not contribute to the aggregate wage gap between ethnic minorities and white employees. Instead, most of the ethnic wage gap exists between observationally equivalent co-workers. Lower pay satisfaction and higher levels of skill mismatch among ethnic minority workers are consistent with discrimination in wage-setting on the part of employers. The use of job evaluation schemes within the workplace is shown to be associated with a smaller ethnic wage gap.

Keywords: ethnic wage gap; workplace segregation; skill mismatch; pay satisfaction; job evaluation (search for similar items in EconPapers)
JEL-codes: J16 J31 M52 M54 (search for similar items in EconPapers)
Date: 2021-09-01
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-isf, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The role of the workplace in ethnic wage differentials (2023)
Working Paper: The Role of the Workplace in Ethnic Wage Differentials (2021)
Working Paper: The Role of the Workplace in Ethnic Wage Differentials (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:qss:dqsswp:2125

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