Arbeitspapier

The Role of the Workplace in Ethnic Wage Differentials

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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.

Language: Englisch

Bibliographic citation: Series: IZA Discussion Papers ; No. 14697

Classification: Wirtschaft
Economics of Gender; Non-labor Discrimination
Wage Level and Structure; Wage Differentials
Personnel Economics: Compensation and Compensation Methods and Their Effects
Personnel Economics: Labor Management

Subject: ethnic wage gap
workplace segregation
skill mismatch
pay satisfaction
job evaluation

Event: Geistige Schöpfung

(who): Forth, John
Theodoropoulos, Nikolaos
Bryson, Alex

Event: Veröffentlichung

(who): Institute of Labor Economics (IZA)

(where): Bonn

(when): 2021

Handle: http://hdl.handle.net/10419/245748

Last update: 10.03.2025, 11:43 AM CET

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Object type

Arbeitspapier

Associated

Forth, John
Theodoropoulos, Nikolaos
Bryson, Alex
Institute of Labor Economics (IZA)

Time of origin

2021

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