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The Role of the Workplace in Ethnic Wage Differentials

John Forth, Nikolaos Theodoropoulos and Alex Bryson

No 14697, IZA Discussion Papers from Institute of Labor Economics (IZA)

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)
Pages: 50 pages
Date: 2021-08
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-isf, nep-lab and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published - published in: British Journal of Industrial Relations, 2023, 61 (2), 259-290

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Journal Article: The role of the workplace in ethnic wage differentials (2023) Downloads
Working Paper: The Role of the Workplace in Ethnic Wage Differentials (2021) Downloads
Working Paper: The Role of the Workplace in Ethnic Wage Differentials (2021) Downloads
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