Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245748 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14697
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
ethnic wage gap
workplace segregation
skill mismatch
pay satisfaction
job evaluation
JEL: 
J16
J31
M52
M54
Document Type: 
Working Paper

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