The Changing Distribution of the Male Ethnic Wage Gap in Great Britain

Abstract

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Minimum Wage in Germany: Countering the Wage and Employment Gap between Migrants and Natives?

“…Similar developments can be observed in the UK, where the introduction of the minimum wage has led to a wage gap reduction between ethnic minorities and white workers in the lower wage groups (Clark and Nolan, 2021). In addition, both the minimum wage in the UK (when it was introduced) and the national minimum wage in the U.S. were set comparatively low in relation to median income.…”

Accounting for Firms in Ethnicity Wage Gaps Throughout the Earnings Distribution

“…The insignificant contributions of firm-specific effects to gaps between the 10 th percentiles of the ethnic minority and white wage distributions may be related to the bite of the National Minimum Wage, which sets a wage floor for such low-paid employees. This could plausibly limit opportunities for low-wage employers to exercise wage setting powers to the detriment of ethnic minority workers (see Clark & Nolan, 2021, for analysis of the differential effects of minimum wages in the UK on ethnic minority workers, and Derenoncourt & Montialoux, 2021, for evidence on such effects in the US).…”

“…The gaps vary across ethnic groups and by gender (Longhi & Brynin, 2017). In contrast to the gender wage gap, there is no clear evidence of convergence in these gaps (Clark & Nolan, 2021;Li & Heath, 2020). Because previous studies rely on household survey data, they cannot address the potential contribution of the firm to ethnicity wage gaps.…”

“…3 For other recent applications of these decomposition methods that analyse the distributions of pay gaps, see Clark and Nolan (2021), who study ethnicity wage gaps in the UK over time using household survey data, and Kaya (2021), who studies the gender wage gap in Turkey using employer-employee linked data.…”

“…For completeness, we provide some basic descriptive information on ethnicity wage gaps using gross hourly earnings calculated as the ratio of gross weekly pay to usual weekly hours including overtime. This second wage measure is like the gross hourly pay reported by the household respondents in the UK Labour Force Survey, which is employed inClark and Nolan (2021) in their analysis of ethnicity wage distributions.…”