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Labour market attainment of BMEs in Britain -- Evidence from the LFS 1992-2004 (For presentation at the ONS/ESDS Conference on LFS on 6 Dec. 2005 at RSS)

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Presentation on theme: "Labour market attainment of BMEs in Britain -- Evidence from the LFS 1992-2004 (For presentation at the ONS/ESDS Conference on LFS on 6 Dec. 2005 at RSS)"— Presentation transcript:

1 Labour market attainment of BMEs in Britain -- Evidence from the LFS (For presentation at the ONS/ESDS Conference on LFS on 6 Dec at RSS) Dr Yaojun Li BA MA MPhil (Oxon) DPhil (Oxon) Reader in Sociological Analysis Department of Sociology Birmingham University Tel: Web:

2 Research on ethnic disadvantages -- where academic and policy interests converge Academic interests, esp. since 1991 SAR The 1965 Race Relations Act, which made discrimination in public places unlawful, but excluding employment and housing The 1968 Race Relations Act, which made it unlawful to ‘discriminate on grounds of colour, race, or ethnic or national origins in recruitment, training, promotions, dismissals, and terms and conditions of employment’ (Layton- Henry, 1985) The 1976 Race Relations Act, which extended the definition of discrimination to include indirect discrimination The 2000 Race Relations (Amendment) Act, placing a general duty on public authorities to eliminate unlawful discrimination Tony Blair has recently made it an objective to eliminate discrimination, ‘though it is nearly 40 years since the first Race Relations Act, it is clear that racial discrimination in the labour market still persists’. He set the goal, ‘that in ten years’ time, ethnic minority groups should no longer face disproportionate barriers to accessing and realising opportunities for achievement in the labour market’ (Cabinet Office, 2003).

3 Two levels of explanation Personal Level -- Human Capital Policy Level -- discrimination Under-attainment in LM ? Ethnic penalties

4 Essential elements in the human capital theory Investments in education and training that can improve people’s job-related skills and increase one’s productivity. The investment entails direct costs and foregone earnings, but people may well expect returns which will manifest themselves in enhanced future income streams: reduced economic risks, greater economic stability and steady economic advancement Knowledge & experience about the labour market Language proficiency

5 The panel structure started in 1992 Income started in W5 in the Winter season of 1992 If we use a-d for Spring, Summer, Autumn and Winter, then income data are available at W5 for 92d-96d; W1 and W5 for 97a-04d As W1 is face to face interview and W2-5 are by telephone, so it is always, in my opinion, preferable to use data in W1 wherever possible In this presentation, I will focus on men aged LFS

6 Analytical framework

7 Table 1: ethnic profiles Ethnicgroups:COT7 yearWhiteB CarB AfrIndianPak/BangChineseOtherTotal , , , , , , , , , , , , , , , , , , , , , , , , , ,131 Total 413,665 3,571 2,659 7,991 6,292 1,505 6, ,229

8 Table 2: ethnic/generation indicator Ethnic-Generation indicator year UKbornW FbornW BME2ndG BME1.5G BME1stG Total ,790 1, ,355 36, ,701 1, ,374 36, ,685 1, ,489 36, ,740 1, ,405 36, ,421 1, ,491 35, ,714 1, ,456 35, ,875 1, ,572 34, ,306 1, ,553 33, ,793 1, ,485 32, ,894 1, ,794 32, ,117 1, ,918 32, ,279 1, ,916 31, ,212 1, ,975 30,130 Total 395,527 18,116 1,761 6,011 20, ,198

9 Table 3: Patterns of Unemployment Employmentstatus: COT4 yearEmployeeSelf-EmplUnemplInactiveTotal Total

10 Table 4Logit regression on unemployment

11 Table 5: Patterns of class positions Classes: Erikson-Goldthorpe92: COT yearI-IIIIIaIVabc V-VI VIITotal Total

12 Table 6 Logit regression on unskilled working class

13 Table 7: Patterns of gross weekly income yearmeansdminmax

14 Table 8 Regression on logged weekly gross income

15 My writing on labour market Li, Y. (2005) ‘Exploring income differentials: a comparison between human and social capital approaches’, presentation at the ESDS Government Research Conference, British Academy, 4 Nov Li, Y. (2006) ‘Social capital, ethnicity and the labour market’, Proceedings of International Conference on Engaging Community, conference jointly organized by the United Nations and the Government of the State of Queensland in Australia (conference 14-17, Aug. 2005). Li, Y., Lu, H., and Lu, X. (2006) ‘Income differentials and social justice in contemporary China’, in B.Wu, H. Zhang and A. Flynn (eds): Marginalisation in China: Perspectives on Transition and Globalisation, Aldershot: Ashgate. Li, Y. and R. O’Leary (2004) ‘Progress in reducing Catholic disadvantages in Northern Ireland’, in Anthony Heath and Sin Yi Cheung (eds) (forthcoming), Ethnic Differences across Countries, Oxford: OUP. Purdam, K. and Li, Y. with Brown, M. and Wathan, J. (2003) A profile of the housing and socio-economic circumstances of black and minority ethnic people in Wales, Cardiff: National Assembly of Wales. Li, Y. (2002) ‘Falling off the ladder? Professional and managerial career trajectories and unemployment experiences’, European Sociological Review, 18(3): Li, Y., Bechhofer, F., McCrone, D., Anderson, M. and Stewart, R. (2002) ‘A Divided Working Class? Planning and Career Perception in the Service and Working Classes’, Work, Employment and Society, 16(4): Garrat, D. and Li, Y. (2005) ‘The foundations of experimental/empirical research methods’, in B. Somekh and C. Lewin (eds). Research Methods in the Social Sciences, London: Sage, pp:


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