Spatial-Ethnic Inequalities: The Role of Location in the Estimation of Ethnic Wage Differentials

44 Pages Posted: 23 Oct 2017

See all articles by Simonetta Longhi

Simonetta Longhi

University of Essex - Institute for Social and Economic Research (ISER); Institute for the Study of Labor (IZA); Tinbergen Institute

Abstract

Analyses of ethnic and racial wage differentials neglect the fact that minorities cluster in urban and in more deprived areas. This paper estimates ethnic wage differentials by comparing minorities to the majority in the same local labour market and therefore facing similar socio-economic conditions. Location is important: in the UK ethnic wage differentials and their variation across areas are partly explained by job characteristics and especially occupation. Since minorities in some areas are worse off compared to minorities in other areas, there may be scope for policy to incentivise mobility of specific groups.

Keywords: race, ethnicity, wage differentials, spatial location, unequal distribution, multilevel models

JEL Classification: J31, J71, R10, R23

Suggested Citation

Longhi, Simonetta, Spatial-Ethnic Inequalities: The Role of Location in the Estimation of Ethnic Wage Differentials. IZA Discussion Paper No. 11073. Available at SSRN: https://ssrn.com/abstract=3056611

Simonetta Longhi (Contact Author)

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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