Authors: Sicong Wang, Prof. David BlackabyProf. Philip Murphy and Nigel O’Leary, Swansea University

Day One – Tuesday 25th June

Strand – Labour Markets

Session Three: 4.30pm – 6pm

The paper examines the impacts of human capital and socio-economic characteristics on ethnic unemployment and determines how much of the difference in unemployment between ethnic minorities and whites is due to the characteristic differences and how much is caused by the coefficient difference such as discrimination during the recent and greatest recession of 2008-2010, using the Quarterly Labour Force Survey, a multivariate analysis and decomposition method.

The results show that male ethnic minorities suffer greater unemployment penalty than whites during the recession, particularly Black men whose unemployment rate is 14.99% and is 8.34 percentage points higher than white men, whilst Indians are the most successful group among male ethnic minority groups. The results also show that the impacts of region, educational qualification, marital status, immigrant status and children on male unemployment vary across ethnicities. Celtic Fringe significantly increases white men’s unemployment probability but decreases ethnic minorities’. CSE qualification raises the unemployment likelihood of Pakistani and Bangladeshi men.

In addition, coefficient difference explains major unemployment gaps between white and ethnic minorities and indicates discrimination for ethnic minorities. These findings have crucial implications for active labour market policy.

Presentation not available.