We know that ethnic minorities in Great Britain are paid less on average than White British people. We also know that ethnic minorities are more likely to live in deprived areas with lower job opportunities. Does location matter in shaping ethnic wage gaps?
This research measures ethnic wage gaps by comparing minorities to majority workers in the same local labour market and focuses on the variation of wage gaps across areas. As wage gaps vary across areas, using one single national measure may be misleading. Higher wage gaps across groups are associated with higher occupational segregation and ethnic diversity, while higher wage gaps within groups are associated with higher regional specialisation and proportion of co‐ethnics. Policies could help by improving job location and selection into occupations across groups.
Longhi S. (2020) Does Geographical Location Matter for Ethnic Wage Gaps?, Journal of Regional Science, 60(3): 538-557.