Most ethnic groups experience a ‘pay penalty’ in excess of 5 per cent.
Key findings include:
- Black male graduates earn 17% less than white male graduates.
- Pakistani/Bangladeshi non-graduate men earn 14% less than white non-graduate men.
- Black graduate women experience a pay penalty of 9% relative to white women, equating to a full-time equivalent of over £3,000 a year.
Socioeconomic background is important for driving labour
market outcomes but is unlikely to explain away the sex and
ethnicity-based pay penalties outlined here