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The Role of the Workplace in Ethnic Wage Differentials

Forth, J. ORCID: 0000-0001-7963-2817, Theodoropoulos, N. & Bryson, A. (2022). The Role of the Workplace in Ethnic Wage Differentials. British Journal of Industrial Relations, doi: 10.1111/bjir.12696

Abstract

Using linked employer-employee data for Britain, we examine ethnic wage differentials among full-time employees. We find substantial ethnic segregation across workplaces. However, this inter-workplace segregation does not contribute to the aggregate wage penalty in Britain. Instead, most of the ethnic wage gap exists within the workplace, 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 presence of recognised trade unions and the use of job evaluation schemes within the workplace are associated with a smaller ethnic wage gap. These findings indicate that more attention should be placed on ensuring fairness in wage determination.

Publication Type: Article
Additional Information: © 2022 The Authors. British Journal of Industrial Relations published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Publisher Keywords: ethnic wage gap; workplace segregation; skill mismatch; pay satisfaction; job evaluation
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Departments: Bayes Business School > Management
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