Ethnicity Pay Gap in Great Britain: Analysis and Recommendations

This study examines the ethnicity pay gap in Great Britain and analyzes the findings. It highlights the disparities between white British workers and other ethnic groups, as well as the gender pay gap within ethnic groups. The study also provides recommendations to minimize the ethnicity pay gap and promote equal pay for all employees.

Practical data analysis
for business

Abstract
The present study assists to identify the ethnicity pay gap within Great Britain and the findings
elaborates that the gap is narrowed since 2017. However, there is a high employment rates within
White British as compared to other ethnic groups and that is why, the gap did not minimize.
Apart from this, there is a gap between male and female within ethnic groups and also companies
prefer old age people as compared to young one because of having good experience in
professional industry. Therefore, study also present list of ways through which ethnicity can be
minimized within UK and also provide good pay to all employees without any discrimination on
the basis of race.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Finding and analysis....................................................................................................................4
CONCLUSION..............................................................................................................................10
Recommendations .....................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................14

INTRODUCTION
Race is considered one of the most protected characteristic in Equality Act, 2010 and as
per the act, it is an unlawful discrimination which is performed within any state due to certain
reasons (Longhi and Brynin, 2017). Therefore, race refers to color or nationality and it is mainly
found between white and black peoples. For that, Black, Asian and Minority ethnic people
(BAME) was formed with an idea to fight against discrimination in 1970s. The present study is
also based upon ethnicity pay gap in Great Britain. The term refers to the difference in average
hourly rate of pay between BAME and non BAME employees within an organization. For that,
study will explain the issue faced by the people and provide recommendations to improve the
same.
Finding and analysis
The pay gap between white British workers and other ethnic worker’s groups is largely in
favor of whites and this reflect that there is a race discrimination occur in the nation. Also, pay
discrimination probably occurs in temporary, casual and generally insecure work in which
minorities are over represented. Though it is difficult for the organizations to pay less top the
people, but most of the organizations perform the same on the basis of ethnicity. By analyzing
the situation since 2017, it has been compulsory for companies in Great Britain who have 250
employees to present the data of gender pay gaps in each financial year (Platt and Warwick,
2020). Thus, UK government also begun to publish their ethnicity pay gap on annual basis. Thus,
to minimized the same, government response quickly and a petition for introduction of
mandatory ethnicity pay gap reporting was further launched in March, 2020. In this, almost all
the organization has to signed and present a mandatory report of ethnicity pay gap.
Percentage of employees in Great Britain

From the above image, it is interpreted that in Britain White people are employed within
organizations i.e. 7.9% as per the data available within 2018. Whereas only 0.5% of the Chinese
people employees within a nation which is almost ¾ of the total population. On the other side,
minorities are also employed within companies with a proportion of 3.2%. Also, the second
smallest group is belonging of Bangladeshi with a percentage of 0.7 (Ethnicity pay gap in Great
Britain:2018, 2019). Thus, it is clearly reflected that majority of the people working in Britain
are White People along with other minorities as well.
Hourly median pay gap between White and Ethnic minority group since 2012
Descriptive statistics
Ethnic
minority
Mean 5.0125
Standard
Error 0.768913
Median 4.25
Mode 3.8
Standard
Deviation 2.174815

Interpretation: As per the table (Appendix -1) and graph, it has been analyzed that the ethnicity
pay gap between White and Ethnic minority employees has narrowed to their smallest level since
2012 within England and Wales (Zwysen and Longhi, 2018). As per the official data available, it
is analyzed that the median hourly pay for White ethnic group is £12.40 per hour as compared to
ethnic minority i.e. £12.11 per hour which reflects the pay gap is 2.3%. However, in 2014 the
pay gap is high i.e. 8.4% and in 2018 onward the rate is decreases by 2.1% as well. This is a sign
of positive because decrease in ethnicity pay gap will help organizations to work as a team and
improve the performance of a company as well (Ethnicity pay gap:2019, 2019).
Further, through the descriptive statistic it has been analyzed that the average mean of
ethnic minority is 5.01 which is fall within 2012 year. Also, more than 50% of the ethnic
minority gap is 4.1 whereas, the repetitive group is 3.8. This in turn reflect that in 2014 the gap is
high but as the year passes the gap is fall by 2.1%. Moreover, there is still a huge gap between all
the ethnic minorities.
Median hourly pay and pay gap within people
Ethnicity
Pay
Gap
(%)
Hourly
pay (£)
Black Caribbean 3.7 12.03
Black African 7.9 11.5
Other Asian
background 7.5 11.55
Other Black /
African /
Caribbean
background
4.7 11.9
Other ethnic
group 8.5 11.43
Other White
(incl
gypsy/traveller)
7.6 11.54
White and Asian -7 13.37
White and Black
African 15.4 10.57
White and Black 12.6 10.92

Caribbean
White British 0 12.49
Interpretation: In accordance with the above table (source by government official statistics), it
is exhibit that Black African earn £11.5 per hour with a pay gap % 7.9 whereas Asian
background people earn £11.55 per hour which reflects that there is a positive pay gap. On the
other side, they earn less than White British who earn £12.49 per hour with a 0% of pay gap.
Therefore, it is reflected that there is ethnicity pay is one of the long-lasting phenomena and
ethnic minorities earn less than compared to White people (Hudson and et.al., 2017). This might
be associate with social disadvantage and as a result, it leads to discrimination.
This is also supported by Longhi (2020) that new arrivals of a country generally have a
poor command of English and due to unfamiliar with UK’s culture these factors affect pay. As a
result, there is a need to consider the employment rates of a country, as it might vary from ethnic
group and gender. Study shows that White British people have a highest employment rates
during 2002 to 2014, whereas other ethnic people have low pay i.e. around 30% low from others.
Percentage of men and women as per the ethnicity group in Great Britain
Female Male
Arab 12.49 12.1
Bangladeshi 10.6 10.41
Black Caribbean 12.09 12.03
Other Black /
African /
Caribbean
background 11.53 12.28
White Irish 16.93 17.8
Other ethnic
group 11.11 12.03
Other Asian
background 11.06 12.16
Other White
(including Gypsy
Traveller) 10.95 12.07

Other Mixed /
multiple ethnic
background 12.07 13.28
Black African 10.92 12.13
Pakistani 10.1 11.43
White and Asian 12.5 14.43
White British 11.21 13.78
White and Black
African 10.13 12.82
White and Black
Caribbean 9.71 12.76
Chinese 14.16 18.05
Indian 12.39 16.49
Correlation 0.79
Interpretation: In accordance with the above table, it is interpreted that there is a strong
relationship between men and women i.e. 79%. On the other side, it is also examined that in
White British male earn high as compared to women. Whereas, in Black Caribbean, the pay of
female as compared to male are slightly high (Atkinson and et.al., 2018). Apart from this, there
is a wide difference between the pay gap of White and Black African men, women and this
might be relying either age factor or type of work.
Pay on the basis of Age
Age 16-29
A
g
e
3
0
+
% £ % £
Black Caribbean -2.7 10.09 7.6 12.66
Black African -12.8 11.08 15.7 11.55
Other Asian background 0.7 9.75 12.2 12.03
Other Black / African /
Caribbean background -6.4 10.45 7.7 12.65
Other ethnic group -2.9 10.1 15.4 11.59
White and Asian -20 11.78 -14.1 15.63
White and Black African 1.4 9.68 -0.9 13.82

White and Black Caribbean 4.5 9.38 6.3 12.84
White British 0 9.82 0 13.7
Interpretation: From the above data it has been interpreted that there is also a huge gap between
younger and older people on the basis of ethnicity. Such that companies pay higher amount to
30+ White employees. As there is also a pay gap between other minorities as well as in White
British people. Though it is interpreted that most ethnic minority group age 30 years earn less
than White people. On the other side, many of those in ethnicity minority group aged 16 to 29
further earn more than white people. This in turn reflect that people may earn less due to no
experience but White people earn higher because of having good experience as compared to
ethnic people (Bivins, 2017).
Secondary data
The highest percentage of people who working in Great Britain is White British and it is
estimated from the above study that it is estimated to account for 79.5% of the working
population and further it is followed by white other (7.9%) and then Black African or Black
British (3.2%). Therefore, it is reflected that the ethnic group working within Great Britain is of
smallest proportion and even they work high as compared to others. It is also supported by
Aspinall (2020) that organizations do not prefer minority groups due to their arrival from other
country and that is why, they face some difficulties to understand the culture of UK as compared
to those people who born in UK. Thus, proportion of Black, Asian and other ethnic minorities
will rise from 8% to 20% by 2051 (UK’s ethnic minority numbers to rise to 20% by 2051, 2015).
Also, among all black and Asian population are increase significantly due to expected high level
of immigration from Europe and Australia (Costa Dias, Joyce and Parodi, 2020).
Secondary study also reveals that White British was the largest group among all ethnic
group and also the pay gap is higher among White British as compared to other because of their
culture and education background (de Noronha, 2019). That is why, it also leads to a difference
between the men and women pay gap as well. Such that by taking into account factors such as

age, sex, marital status, qualification, country of birth further narrow the gap for many ethnic
groups. Also, as per the data provided above (pay on the basis of age), it is also examined that
White British whose age is above 30 are earn more as compared to other ethnic groups. This is
because, company prefer White people who have good experience (it comes when they involved
themselves within professional industry) (Iganski and Mason, 2018). Therefore, ethnic minorities
are around twice as likely to be employed as comparted with White British. It is so because 47%
group work on zero hour contracts and hence, they less likely to benefit from legal protection in
a workplace (Understanding pay gaps, 2020).
As compared to past years it is examined that when an organization compares worker
with same qualification or experience like general worker of Bangladesh and White British man,
they prefer person of color who is still likely to earn significantly less (Paccoud, Niesseron and
Mace, 2020). In addition to this, it is also analyzed that companies also prefer those people who
born within UK and knows the entire culture whereas other minorities people such as Asian,
Black British, Indian and Pakistani are less preferred due to their race and low experience tow
work in such group. Hence, as per the Annual Population Survey (APS) report it is clearly
mentioned that earning of white people is more as compared to ethnic groups and that is why,
majority of such group is higher as compared to others.
Overall it can be stated that white other ethnic group is one of the most prominent ethnic
group over white British. It is so because UK is a part of European Economic Area where people
have a right to move freely of any country and that is why they share the highest numbers ( Razai
and et.al., 2021). Further, as per Annual Population Survey, 2018 report it has been analyzed
that White other have a highest employment rate as compared to other ethnic group but this is
changed in 2019. That is why, government has to take steps in order to minimize the ethnicity.
CONCLUSION
By summing up above it has been concluded that it provides a clear evidence upon the
progress of shrinking ethnicity pay gap within UK over the last 2 to 3 years. Based upon the
results, it has been identified that companies pay high amount to White British as compared to
other ethnic groups because of race, age and gender. Apart from this, there are many factors who
contribute towards increasing ethnicity pay gap which includes age, education, gender, country
of birth, work pattern etc. Therefore, it is also summarized from the above findings that ethnicity

pay gap between White British and other ethnic groups narrow once the factor like education and
occupation are taken into account. However, there are some gap presented over the White British
from other such that most of the companies prefer to work with White people because of their
race and strong experience within UK as compared to others. This in turn also lead to increase
the pay gap that also cause negative impact upon ethnic minorities.
Recommendations
Through the above findings it has been analyzed that ethnicity pay gap is one of the
major issue within Great Britain and to remove the same, there are some suggestions presented
that helps to minimize the issues. These are as mentioned below:
 There is no currently compulsory system of company reporting of ethnicity pay gap in
UK, so it is recommended to make strong grounds for extending compulsory reporting to
ethnicity and gender (Petrina and Ross, 2021). Also, it is necessary to looking at labor
market outcomes for different ethnic minority group instead of treating all as a single
group.
 It is also suggested to the company to reduce prejudice and bias recruitment, pay decision
and government make it essential for the companies to comply with all the laws that
helps to minimize the ethnicity especially to minimum wage legislation (Clark and
Shankley, 2020). Further, if organization make jobs available at all levels on a flexible
basis then it will provide opportunities to all employees including minorities people.
 Further, another suggestion to address the ethnic pay gap is to unlock the earning
potential of education by addressing differences in subject and career choice, educational
attainment as well as apprenticeships (Watkinson, Sutton and Turner, 2021). Moreover,
each and every company has to publish their report on ethnicity pay gap in transparent
manner and then government monitor the progress, so that effectual strategies will be
implemented accordingly.

REFERENCES
Books and Journals
Aspinall, P. J., 2020. Ethnic/racial terminology as a form of representation: a critical review of
the lexicon of collective and specific terms in use in Britain. Genealogy. 4(3). p.87.
Atkinson, H., and et.al., 2018. Race, ethnicity & equality in UK history: A report and resource
for change.
Bivins, R., 2017. Picturing race in the British National health service, 1948-1988. Twentieth
Century British History, 28(1), pp.83-109.
Clark, K. and Shankley, W., 2020. Ethnic minorities in the labour market in
Britain. ETHNICITY, RACE AND INEQUALITY IN THE UK, p.127.
Costa Dias, M., Joyce, R. and Parodi, F., 2020. The gender pay gap in the UK: children and
experience in work. Oxford Review of Economic Policy. 36(4). pp.855-881.
de Noronha, L., 2019. Deportation, racism and multi-status Britain: immigration control and the
production of race in the present. Ethnic and Racial Studies. 42(14). pp.2413-2430.
Hudson, M. and et.al., 2017. Ethnicity and low wage traps: favouritism, homosocial reproduction
and economic marginalization. Work, employment and society. 31(6). pp.992-1009.
Iganski, P. and Mason, D., 2018. Ethnicity, equality of opportunity and the British National
Health Service. Routledge.
Longhi, S. and Brynin, M., 2017. The ethnicity pay gap. Equality and Human Rights
Commission.
Longhi, S., 2020. Does geographical location matter for ethnic wage gaps?. Journal of Regional
Science. 60(3). pp.538-557.
Paccoud, A., Niesseron, P. and Mace, A., 2020. The role of ethnic change in the closing of rent
gaps through buy-to-let gentrification. Urban Geography, pp.1-16.
Petrina, S. and Ross, E. W., 2021. Higher Racism: The Case of the University of British
Columbia—On the Wrong Side of History but Right Side of Optics. Workplace: A
Journal for Academic Labor, (32).
Platt, L. and Warwick, R., 2020. COVID‐19 and ethnic inequalities in England and
Wales. Fiscal Studies. 41(2). pp.259-289.
Razai, M. S. and et.al., 2021. Mitigating ethnic disparities in covid-19 and beyond. Bmj. 372.
Watkinson, R. E., Sutton, M. and Turner, A. J., 2021. Ethnic inequalities in health-related quality
of life among older adults in England: secondary analysis of a national cross-sectional
survey. The Lancet Public Health. 6(3). pp.e145-e154.
Zwysen, W. and Longhi, S., 2018. Employment and earning differences in the early career of
ethnic minority British graduates: the importance of university career, parental

background and area characteristics. Journal of Ethnic and Migration Studies. 44(1).
pp.154-172.
Online
Ethnicity pay gap in Great Britain:2018. 2019. [Online]. Available through:
<https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkin
ghours/articles/ethnicitypaygapsingreatbritain/2018>.
Ethnicity pay gap:2019. 2019. [Online]. Available through:
<https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkin
ghours/articles/ethnicitypaygapsingreatbritain/2019>.
UK’s ethnic minority numbers to rise to 20% by 2051. 2015. [Online]. Available through:
<https://www.bbc.com/news/10607480#:~:text=Ethnic%20minorities%20are%20set
%20to,%2C%20to%2020%25%20by%202051.>.
Understanding pay gaps. 2020. [Online]. Available through:
<https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2020/understanding-
pay-gaps.pdf>.

APPENDIX
Appendix 1
Years
Ethnic
minority
2012 5.1
2013 4.3
2014 8.4
2015 8.2
2016 3.8
2017 4.2
2018 3.8
2019 2.3