Males from ethnic minority backgrounds earn less than white counterparts

Men from ethnic minorities earn 10% less than their white counterparts with the same characteristics, according to new research.

The surveyanalysed data from 50,000 employees at 7,000 workplaces, taken from the 1998, 2004 and 2011 British Workplace Employment Relations Survey and linked workplace-level data collected from senior managers with questionnaires issued to 25 randomly selected employees in each workplace.

The study also found that female employees from an ethnic minority earned on average 7% less than their white counterparts with the same characteristics.

Both male and female employees with ethnic minority backgrounds were more likely to feel overskilled in their current role, the study revealed, and were, on average, less satisfied with their earnings.The report is the first in the UK to show that the issue of ethnicity pay gaps can be seen from employees with similar positions at the same companies, rather than just across high and low-wage firms.

Whilst some organisations report on their ethnicity pay gap data, activity is very low and it is not a legal requirement to do this.

Interestingly, ethnic minority wage gaps were reduced by a third at workplaces with the presence of recognised trade unions, and by a further third in the presence of a formal job evaluation scheme.