Ethnic minority and migrant pay gaps over the life-cycle

Tessa Hall, Alan Manning and Rebecca Rose

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: It is well-known that ethnic minority and migrant workers have lower average pay than the White UK-born workforce. However, we know much less about how these gaps vary over the life-cycle because of data limitations. We use new data that combine a 1999–2018 panel from the Annual Survey of Hours and Earnings (ASHE) with individual characteristics from the 2011 Census in England and Wales. We investigate pay gaps on labour market entry and differences in pay growth. We find that differences in entry pay gaps are more important than differences in pay growth. The entry pay gaps are large, though vary across groups. The pay penalties on labour market entry can, to a considerable degree, be explained by over-representation in lower-paying firms and, within firms, in lower-paying occupations. For most groups, the pay gaps at entry seem to be largely preserved over the life-cycle, neither narrowing nor widening. For migrants, we find that the extra pay penalty is concentrated almost exclusively in those who arrived in the UK at later ages.

Keywords: wage gpas; ethnicity; migration; wage growth; ASHE-Census; wage gaps (search for similar items in EconPapers)
JEL-codes: J15 J31 J61 J71 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2024-11-22
New Economics Papers: this item is included in nep-hrm and nep-ltv
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Published in Oxford Review of Economic Policy, 22, November, 2024, 40(3), pp. 556 – 578. ISSN: 0266-903X

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:124515

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