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Ethnic Penalties in Unemployment and Occupational Attainment: Evidence for Britain

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  • F. Carmichael
  • R. Woods

Abstract

In spite of progress made since the 1950s and 1960s, black, Indian, Pakistani and Bangladeshi workers remain disadvantaged relative to whites in terms of their labour market opportunities. In general, they experience higher rates of unemployment and tend to be under-represented in higher paid, non-manual occupations. They can therefore be said to pay an ethnic penalty in the competition for jobs although the penalties paid vary considerably between the minority groups. In this paper we examine the different employment experiences of black, Indian, Pakistani and Bangladeshi men and women in terms of their unemployment propensities and occupational attainment.We use maximum likelihood methods to show that the ethnic penalties experienced by minority workers are not fully explained by differences in human capital endowments and personal characteristics. We conclude that at least some of the disadvantage experienced by ethnic minorities in the British labour market can be attributed to discriminatory selection practices by employers.

Suggested Citation

  • F. Carmichael & R. Woods, 2000. "Ethnic Penalties in Unemployment and Occupational Attainment: Evidence for Britain," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(1), pages 71-98.
    • Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:71-98
    DOI: 10.1080/026921700101498
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    References listed on IDEAS

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    1. Peter A. Riach & Judith Rich, 1991. "Measuring Discrimination by Direct Experimental Methods: Seeking Gunsmoke," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(2), pages 143-150, December.
    2. Susan Harkness, 1996. "The gender earnings gap: evidence from the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 1-36, May.
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    Cited by:

    1. Mahmoud Abubaker & Christopher Adam Bagley, 2017. "Methodology of Correspondence Testing for Employment Discrimination Involving Ethnic Minority Applications: Dutch and English Case Studies of Muslim Applicants for Employment," Social Sciences, MDPI, vol. 6(4), pages 1-9, September.
    2. Edsel L Beja, 2018. "Migrant-family background and subjective well-being: Evidence using Blinder-Oaxaca decomposition," Migration Letters, Migration Letters, vol. 15(3), pages 398-408, July.
    3. Jaime Fierro & Sònia Parella & Berta Güell & Alisa Petroff, 2022. "Educational Achievement Among Children of Latin American Immigrants in Spain," Journal of International Migration and Integration, Springer, vol. 23(4), pages 1921-1940, December.
    4. Sayema H. Bidisha, 2009. "Labour Market Experience of Male Immigrants and Ethnic Minorities in the UK," Discussion Papers 09/08, University of Nottingham, School of Economics.
    5. Arouri, Mohamed & Ben-Youssef, Adel & Nguyen, Cuong Viet, 2019. "Ethnic and racial disparities in children's education: Comparative evidence from Ethiopia, India, Peru and Viet Nam," Children and Youth Services Review, Elsevier, vol. 100(C), pages 503-514.
    6. Botrić Valerija, 2016. "Attitudes Towards Immigrants, Immigration Policies and Labour Market Outcomes: Comparing Croatia with Hungary and Slovenia," Croatian International Relations Review, Sciendo, vol. 22(76), pages 5-28, October.
    7. Sheruni De Alwis & Nick Parr & Fei Guo, 2022. "The interacting effects of religion and birthplace on the labour market outcomes of Asian immigrants in Australia," Journal of Population Research, Springer, vol. 39(2), pages 157-199, June.
    8. Arouri, Mohamed & Ben-Youssef, Adel & Nguyen, Cuong Viet, 2019. "Ethnic and racial disparities in children's education: Comparative evidence from Ethiopia, India, Peru and Viet Nam," Children and Youth Services Review, Elsevier, vol. 100(C), pages 503-514.

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