Ethnic minority and migrant pay gaps over the life-cycle

C-Tier
Journal: Oxford Review of Economic Policy
Year: 2024
Volume: 40
Issue: 3
Pages: 556-578

Authors (3)

Tessa Hall (not in RePEc) Alan Manning (London School of Economics (LS...) Rebecca Rose (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:oup:oxford:v:40:y:2024:i:3:p:556-578.
Journal Field
General
Author Count
3
Added to Database
2026-01-25