Research and analysis

Understanding Ethnicity Pay Gaps in the UK Public Sector

This research seeks to establish the existence of sectoral ethnic pay gaps using appropriate data and methods, and to quantify and understand their drivers.

• From: Office for the Pay Review Bodies and Office of Manpower Economics
• Published: 1 August 2023

Documents

Understanding Ethnicity Pay Gaps in the UK Public Sector

PDF, 1.15 MB, 108 pages

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Details

This research, commissioned by the OME, focuses on ethnicity pay gaps in the UK public sector. In terms of the overall UK labour market, the findings confirm that substantial raw ethnic pay gaps (EPGs) exist for several ethnic groups both for males and females across all sectors, with the most substantial deficits being observed for the Pakistani/Bangladeshi and Black ethnic groups. The decomposition analysis provides consistent evidence of unexplained EPGs, that is pay gaps based on comparable characteristics or pay inequality. Further, EPGs tend to be less substantial for native-born ethnicities and to increase as earnings increase. The latter is consistent with a ‘glass ceiling’ or particular pay inequality among higher earners.

Published 1 August 2023