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Ethnic penalties in graduate level over-education, unemployment and wages: evidence from Britain

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  • Anthony Rafferty

Abstract

Although access to higher education has helped many minority ethnic men and women improve their labour market position compared to prior generations or the less qualified, it remains unclear to what extent higher level qualifications facilitate an equalization of labour market outcomes with comparably educated white UK born men and women. This article critically examines ethnic differences in graduate level over-education, unemployment and wages as potential markers of discrimination or broader ‘ethnic penalties’, defined as the differences in labour market outcomes persisting after accounting for observable human capital and demographic characteristics. To estimate ethnic penalties a novel approach using covariate matching is applied. The findings reveal that despite their levels of educational attainment penalties persist among several minority ethnic groups. The implications of pre-labour market social disadvantages for explaining patterns of over-education are highlighted.

Suggested Citation

  • Anthony Rafferty, 2012. "Ethnic penalties in graduate level over-education, unemployment and wages: evidence from Britain," Work, Employment & Society, British Sociological Association, vol. 26(6), pages 987-1006, December.
    • Handle: RePEc:sae:woemps:v:26:y:2012:i:6:p:987-1006
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    Cited by:

    1. Wouter Zwysen & Neli Demireva, 2018. "An Examination of Ethnic Hierarchies and Returns to Human Capital in the UK," Social Inclusion, Cogitatio Press, vol. 6(3), pages 6-33.
    2. Wouter Zwysen & Simonetta Longhi, 2016. "Employment and Earning Gaps in the Early Career of Ethnic Minority British Graduates: the Importance of University Choice, Parental Background and Area Characteristics," RF Berlin - CReAM Discussion Paper Series 1615, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. Zwysen, Wouter & Longhi, Simonetta, 2016. "Labour market disadvantage of ethnic minority British graduates: university choice, parental background or neighbourhood?," ISER Working Paper Series 2016-02, Institute for Social and Economic Research.
    4. Gillian Kingston & Frances McGinnity & Philip J. O’Connell, 2013. "Discrimination in the Irish Labour Market: Nationality, Ethnicity and the Recession," Working Papers 201323, Geary Institute, University College Dublin.

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