Essay Sample on Disparity in Wage and Ethnicity

Introduction

The UK has been facing challenges in the employment market due to the disparities in wages in the ethnic groups. Ethnic discrimination has been one of the main factors contributing to the disparity in wages. The rate of the differences in pay among the diverse races in the UK has increased significantly when compared to other countries around the world. According to Mooza (2008), the UK is made up of diverse ethnic society; the majorities of the people in the country are the whites and earn relatively high wages than other marginal groups. The minority groups include in the UK Chinese, Pakistanis, Bangladesh, Africans, and Indians (Heath, & Cheung, 2006) wage disparities are caused by various factors such as academic background (Brynin & Guveli 2008).

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The gender wage disparity is still a tremendous challenge in the British economy especially, to the minority group. According to Mooza (2008), the gender pay gap is the difference in income between men and women. The gap can be measured using various methods such as the use of mean and median averages.

The next chapters will continue to discuss the disparity of wages between different ethnic groups In the UK, based on various studies. The research will discuss the prior knowledge from other scholars, the methods used in the study, the results and conclusions.

Prior Knowledge

The labour market has been facing equality challenges around the world. In the UK disparity, wage pay has been rampant. The Labour Force Survey data shows the characteristics of the labor market in the UK. The LFS shows the distribution of the gross wages to all employees on an hourly and weekly basis.

Basically, low wage pay is not possible where there are alternatives forms of employment, however, the temporal and casual works can lead to paying discrimination if large numbers of employees are the minority groups. According to Brynin and Guveli, (2012), differences in wage pay and between the minority group and the white could result because of two factors which include; the minority may choose the occupations with lowly paying wage or they could be facing discrimination during the entry into an occupation or they may face bias during the promotion into higher paying jobs. Additionally, the pay gap may occur two different ways which include; within or across the occupation. In case the case occurs in favour of the white workers, then that is wage discrimination. When the minority group choose to work for low paying jobs then segregation is the cause of the low wages According to Clark and Drink water, the chances of the Africans and the Pakistanis to hold the professional jobs has fallen in comparison to the whites while the probability of black Caribbean, Indians and Bangladeshi to be in high ranking jobs.

Women earn lower than men in the UK. According to the Annual Survey of Hours and Earnings (2016), they suggest that earning gap between men and women in Britain is about 13.9% for permanent employees and a difference of 18.1 % for part-time workforce they conducted a study that aimed o understand the reason behind the inequalities in pay for women in the minority ethnic group. According to Longhi and Platti (2008), the overall income disparity is as a result of unequal roles for men, and women, inadequate expertise, and occupational segregation and cultural beliefs. Breach and Li (2017) conducted a study with an aim of assessing the gender pay difference between men and women of the same ethnic community and the income disparity between the women in the minority group and the white people.

The young people in the ethnic groups are most affected by the wage difference in Britain. The situation has called for attention to must researchers. The government and the society as a whole since the inequality in income is contrary to the provisions of the law that emphasizes on the need for equal opportunities, and the principle of merit that requires that an individual's success should depend on hard work and talent without any form of discrimination (Li & Heath, 2018). Most scholars have conducted studies in UK based ethnic issues in the UK rely on cross-sectional data. The authors of the study aimed to identify the ethnic dynamic of employment and income. The studies have heavily documented on unemployment issue related to minority groups but they provide little information on the disparity of ethnic society.

Methods and Data Collection

Brynin and Guveli (2012) used the British Labour force Survey 1993- 2008 to elaborate on how occupational segregation resulted in a wage gap. The research undertook two analyses; the first involved subtracting the average pay within occupation of the minority from the mean of the white people. The authors applied the British Standard Classification SOC90/SOC2000. The other choice involves evaluating the performance of work-related clustering of wage through a more casual evaluation technique. The method is possible through three different ways which include; application of wage regressions using diverse ethnic communities, exempting the occupation factor in the analysis to determine the effects in the results, and also, the decomposition assessment with an occupation.

The research by Breach and Li (2017) relied on the Annual Survey and Hours Earnings (ASHE) to collect data for analysis. However, the data does not have ethnic records. Additionally, the study gathered information from the Office of the National Statistics Force Survey (LFS). Information from LFS involved women aged between 16 to 63 and men who are between 16 to 65 years. The data authors used the information from 1992 onwards to evaluate the research. The ethnic groups involved in the research involved the Indians, Chinese, Pakistani, Bangladesh, and Africans.

Research based on the diverse ethnic issue requires a large sample of data that will enhance the correct interpretation of information. The study by Li and Heath (2018) sourced information from UKLHS. The resource has enough sample size, information related to diverse ethnic groups that enable the authors to evaluate the relationship between the labour markets, and the marginal groups in Britain.

Results

Wages and unemployment issues in Britain have attracted various works research. Most of the researchers find that there is evidence of ethnic wage when the income of the minority group is compared with that of the white people. The white men have higher earnings when compared to the ethnic groups in the country. However, the Chinese and white Irish have a relatively lower difference since most of them can work in specialized jobs. According to Longhi and Platt (2008), the median remuneration for Bangladeshi, Pakistani, and the Chinese is about, PS 6.9, 7.7 and 12.7 respectively. The Median earnings for the Bangladeshi and the Pakistan women are PS7.8 and PS8.3, a rate that is a higher rate than that of men in the same group. However, wage inequality has affected women more than men in ethnic groups.

The level of educational background is important in any occupation. People with limited academic qualification will always opt for casual low paying jobs. According to Bryinin and Guveli (2012), minorities have adequate professional qualifications to work for the highest paying jobs. Additionally, Elliot and Lindley (2008), argue that ethnic segregation has negative impacts on wages. The Indians and the Chinese people work in professional jobs, and therefore, they earn at a similar level as that of the British.

Gender disparity has been occuring over the years between the minority in Britain and the white people in the UK. Women have been most affected by the pay gaps when compared to men of the same ethnic group. However, recently, incomes for women have increased their income levels. Indian women have experienced the widest disparity in the UK since their income difference between them and men is 16%. The Pakistani and the Bangladeshi women have a gap of 5.5% with men in their respective ethnic group. The Chinese women and the white Irish Women have reduced the difference in their income when compared to that of the British men. Additionally, most black African women face varies challenges in the labour market. More than 13% of Black African women have never worked when compared to only 45 of white women. Moreover, the aggregate pay gap between the Caribbean women and the British is narrow. In the case of Pakistani and Bangladesh women, only a few are economically active when compared to the white people. More than 57% of the British women are worked while the Pakistani and Bangladesh women are only 34% (Breach and Li, 2017).

Li and Heath (2018), aimed to understand the relationship between the different ethnic and earnings In Britain. Pakistani Men earned very little amount when compared with British men. Also, the Bangladeshi men, the Caribbean, and the African men received less pay less than white. In overall, women earned less than men in society. Pakistani women had the least income. Additionally, Bangladeshi and African women received little remuneration. According to Li and Health, (2018), people earning are affected by various issues. On average the permanent workers earned more than the part-time employees. When comparing the minority earning and earnings, the British men earn increasingly until they up to the age 40 and their incomes stabilize for more than 15 years until when their earnings start to decelerate. The highest income of white is about PS 2600. The Pakistani and he Bangladeshi receive payments of up to PS1100, and PS1200 respectively. However, the Pakistani and Bangladeshi men receive an increase in payment at the age of 30; a difference of ten years when compared with that of the white people.

Conclusion

The studies from various scholars show that there is a huge disparity between the remuneration rates between the ethnic groups and the white people. The white people have better terms of pay the minority. Additionally, in overall women from marginalized societies in UK have lower income compared to men from their ethnic clusters or white.

British people earn higher than the minority in Britain. Nevertheless, the pay gap is minimal when the pay gap of the white British is compared to that of other races. Moreover, occupational segregation is a major contributor to the different remuneration rates. However, both the minority and the whites have higher earnings as those of the white people in the in professional jobs (Bryinin & Guveli, 2012). The research shows that there is a weak correlation between the pay discrimination and a strong relationship between ethnic segregation and low pay.

Gender gap payments between the minority group of Britain and the white is still a challenge in the current century which recall for economic equality. According to Breach and Li (2017), the ethnic income gap is as a result of racial and gender inequality. The report provides various recommendations. The British Government must encourage the ONS to collect data that will help guide the county to close the disparities in income. Additionally, the government should demand a pay rise for the lowly paid workers in the country. Moreover, the government should encourage women in diverse groups to leadership positions as an attempt to reduce the income gap.

The research by Li and Health, (2018), shows that there is bias in coming between the white and the ethnic group which includes the Caribbean, Bangladesh, and Pakistani and Africans. The white Irish and the white have a relatively close amount of income. The Chinese people have an advantage since their earnings are of high rate.

References

Breach, A., & Li, Y. (2017)...