Resolution Foundation report: Opportunities Knocked? Exploring Pay Penalties Among the UK’s Ethnic Minorities

Most ethnic groups experience a ‘pay penalty’ in excess of 5 per cent.

This is according to a July 2018 report by the Resolution Foundation on pay inequality across ethnic backgrounds, which argues that we these pay ‘gaps’ should instead be considered pay ‘penalties’.

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

Read the report in full.

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