Thread: New working paper from me and @KenClarkEcon out with @iza_bonn: “The Changing Distribution of the Male Ethnic Wage Gap in Great Britain” http://ftp.iza.org/dp14276.pdf  @EthnicityUK @ManUniEconomics @PhDSoSS #EconTwitter (1/9)

We looking at the whole distribution of hourly pay from 1993-2019. Using data from the @ONS Labour Force Survey this graph shows the position of ethnic minority men relative to white men over time and by specific group. (2/9)

We then decompose the #EthnicPayGap in Great Britain across the distribution of hourly wages. We find that some groups experience reductions in the pay gap consistent with lower discrimination. (3/9)

In this figure for Indians the blue “Characteristics” line shows the predicted wage disadvantage of Indian workers relative to White workers if they faced the same labour market structure. The negative results for all but the lowest deciles suggests … (4/9)

… Indians would earn more than Whites if they faced the same labour market structure - up to around 15% more at the top end of the wage distribution. (5/9)

In our analysis we find evidence that workers from Black groups face an apparent #glassceiling barring access to well paid jobs. We see this in the wage disadvantage in rewards that increases as we move up the distribution. (6/9)

We look in more detail as to which characteristics are driving the wage gap. Education consistently has a large effect on narrowing the wage gap for all but Black Caribbeans. The size of the education contribution increases as we move up the wage distribution. (7/9)

Finally, we consider what role the National Minimum Wage ( #NMW) has on the ethnic wage gap. We see that in each period after the introduction in 1999 that the level of the #NMW is associated with a large and significant reduction of the gap for Indians and Black Africans. (8/9)

By documenting the changing #EthnicPayGap across the distribution and not just the mean we gain deeper insight into the nature of the disadvantage faced by the different ethnic minority groups. http://ftp.iza.org/dp14276.pdf  (9/9)