Li

					      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)
                   Dr Yaojun Li
             BA MA MPhil (Oxon) DPhil (Oxon)
              Reader in Sociological Analysis
                 Department of Sociology
                  Birmingham University
                 Email: y.li.3@bham.ac.uk
                     Tel: 0121-4158625
 Web: http://www.sociology.bham.ac.uk/staff/yaojun_li.htm
    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).
       Two levels of explanation



 Personal Level     Ethnic penalties
-- Human Capital

                              Under-attainment in LM


                         ?
   Policy Level
-- discrimination
 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
          LFS 1992-2004
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
  16-64
          Analytical framework

  Diagram 1       Labour market positions of the minority ethnic groups in Britain (1972-2004)


                                             Education


                                 1                                2



Personal characteristics                                              Labour market position
  Ethnicity                                    3                         Employment status
  Gender                                                                 Class position
  Marital status                                                         Income
  Age
  Ethnic/Generation

Note: Solid lines denote direct effects and the dotted line denotes indirect (mediator) effects.
                  Table 1: ethnic profiles
                           Ethnic    groups: COT7
year     White    B Car    B Afr     Indian  Pak/Bang Chinese Other    Total

1992     34,165   294      145       652      405     107     348      36,116
1993     34,097   312      132       579      388     124     383      36,015
1994     34,078   285      198       620      419     119     420      36,139
1995     34,089   278      149       601      432     89      422      36,060
1996     33,846   281      208       608      436     97      449      35,925
1997     33,138   256      198       606      414     119     451      35,182
1998     32,422   267      190       651      485     105     470      34,590
1999     31,699   243      170       612      512     85      540      33,861
2000     30,087   257      217       533      497     106     518      32,215
2001     30,392   326      269       614      539     115     549      32,804
2002     29,503   266      247       657      578     137     645      32,033
2003     28,602   261      268       630      588     149     660      31,158
2004     27,547   245      268       628      599     153     691      30,131

Total   413,665 3,571     2,659     7,991   6,292   1,505   6,546     442,229
Table 2: ethnic/generation indicator
            Ethnic-Generation indicator
 year    UKbornW FbornW BME2ndG BME1.5G BME1stG        Total

 1992    32,790    1,373     110     484     1,355    36,112
 1993    32,701    1,393     124     420     1,374    36,012
 1994    32,685    1,392     117     453     1,489    36,136
 1995    32,740    1,347     140     425     1,405    36,057
 1996    32,421    1,425     120     468     1,491    35,925
 1997    31,714    1,422     142     446     1,456    35,180
 1998    30,875    1,546     145     450     1,572    34,588
 1999    30,306    1,389     144     464     1,553    33,856
 2000    28,793    1,294     160     482     1,485    32,214
 2001    28,894    1,495     144     473     1,794    32,800
 2002    28,117    1,384     126     486     1,918    32,031
 2003    27,279    1,322     155     485     1,916    31,157
 2004    26,212    1,334     134     475     1,975    30,130

 Total   395,527   18,116   1,761   6,011   20,783   442,198
Table 3: Patterns of Unemployment
        Employment   status: COT4
year    Employee     Self-Empl Unempl   Inactive   Total

1992    62.08        13.51    10.61     13.80      100.00
1993    61.33        13.67    10.40     14.59      100.00
1994    60.88        14.01    9.68      15.43      100.00
1995    62.39        13.65    8.57      15.40      100.00
1996    62.99        14.08    7.59      15.34      100.00
1997    64.15        13.55    6.39      15.91      100.00
1998    65.49        12.92    5.75      15.84      100.00
1999    66.25        12.32    5.34      16.09      100.00
2000    65.95        12.97    4.73      16.34      100.00
2001    65.86        12.77    4.70      16.68      100.00
2002    65.93        12.87    4.61      16.59      100.00
2003    65.18        13.72    4.28      16.82      100.00
2004    65.58        13.58    4.01      16.83      100.00

Total   64.19        13.35    6.60      15.85      100.00
Table 4           Logit regression on unemployment
                           Model 1     Model 2     Model 3

 Age/10                    -1.099***   -.938***    -.937***
 Age/10 squared             .128***     .107***     .107***
 Marital status
    Married (base)
    Once married           1.007***     .999***     .999***
    Never married           .877***     .940***     .940***
 Time                      -.110***    -.109***    -.108
 Education
    Degree+ (base)
    Professional                        .045        .045
    A Levels                            .383***     .383***
    O Levels                            .511***     .511***
    Primary/none                       1.139***    1.139***
 Ethnic/generation
    UK born White (base)
    F born White                       .129***     .279***
    2nd gen BME                        .776***     .380*
    1.5 gen BME                        .794***     .658***
    2nd gen BME                        .874***     .923***
 Interaction effects
    F born White*time                              -.024*
    2nd gen BME*time                                .057*
    1.5 gen BME*time                                .021
    2nd gen BME*time                               -.007

 Constant                  -.099***    -1.106***   -1.113***
 Pseudo R2                  .061        .093        .093
 N                         384726      359238      359238
  Table 5: Patterns of class positions

         Classes: Erikson-Goldthorpe92: COT
year     I-II     IIIa     IVabc V-VI    VII     Total

1992     40.06   8.40   10.46    24.89   16.19   100.00
1993     40.56   8.51   10.87    24.42   15.64   100.00
1994     40.48   8.34   11.16    24.06   15.96   100.00
1995     41.06   8.34   10.87    23.77   15.96   100.00
1996     40.99   8.70   11.08    23.37   15.86   100.00
1997     41.03   8.39   10.00    23.23   17.34   100.00
1998     41.46   8.91    9.24    23.60   16.79   100.00
1999     42.10   9.15    8.53    23.58   16.64   100.00
2000     41.93   9.30    9.17    23.12   16.47   100.00
2001     39.10   6.63   12.54    15.18   26.54   100.00
2002     39.81   6.50   12.31    14.58   26.80   100.00
2003     40.23   6.18   13.38    14.27   25.95   100.00
2004     39.84   6.16   13.22    14.60   26.18   100.00

Total    40.62   7.86   11.10    20.56   19.86   100.00
  Table 6 Logit regression on unskilled working class
                          Model 1     Model 2     Model 3

Age/10                    -2.615***   -2.276***   -2.276***
Age/10 squared              .304***     .255***     .255***
Marital status
   Married (base)
   Once married            .512***     .414***     .414***
   Never married           .407***     .575***     .575***
Time                       .052***     .075***     .075***
Education
   Degree+ (base)
   Professional                       1.194***    1.196***
   A Levels                           2.833***    2.836***
   O Levels                           3.046***    3.048***
   Primary/none                       4.451***    4.456***
Ethnic/generation
   UK born White (base)
   F born White                       -.893***    -.451***
   2nd gen BME                        -.039       -.415
   1.5 gen BME                         .388***     .175***
   2nd gen BME                         .066*      -.003
Interaction effects
   F born White*time                              -.055***
   2nd gen BME*time                                .046
   1.5 gen BME*time                                .028
   2nd gen BME*time                                .008

Constant                  3.828***     .266***     .254***
Pseudo R2                  .068        .309        .400
N                         217501      204907      204907
Table 7: Patterns of gross weekly income

 year     mean      sd       min    max

 1992     333.97    509.70   2.00   23076.00
 1993     321.92    324.72   1.00   16938.00
 1994     323.60    274.23   1.00   22226.00
 1995     337.74    234.52   1.00   10000.00
 1996     354.11    308.77   1.00   10385.00
 1997     360.91    56.64    1.00   5000.00
 1998     381.67    287.04   1.00   9923.00
 1999     396.86    276.12   1.00   5385.00
 2000     416.34    288.43   5.00   5769.00
 2001     440.55    343.25   5.00   13385.00
 2002     444.45    311.53   2.00   12758.00
 2003     461.40    312.94   5.00   4615.00
 2004     475.52    385.88   1.00   15692.00
Table 8 Regression on logged weekly gross income
                           Model 1    Model 2     Model 3

 Age/10                    1.501***   1.326***    1.326***
 Age/10 squared            -.175***   -.154***    -.154***
 Marital status
    Married (base)
    Once married           -.126***   -.097***    -.097***
    Never married          -.145***   -.175***    -.175***
 Time                       .035***    .034***     .034***
 Education
    Degree+ (base)
    Professional                      -.229***    -.229***
    A Levels                          -.405***    -.405***
    O Levels                          -.467***    -.468***
    Primary/none                      -.608***    -.609***
 Ethnic/generation
    UK     born    White
 (base)
    F born White                        .149***     .112***
    2nd gen BME                       -.156***    -.136*
    1.5 gen BME                       -.224***    -.223***
    2nd gen BME                       -.175***    -.103***
 Interaction effects
    F born White*time                               .005*
    2nd gen BME*time                              -.003
    1.5 gen BME*time                              -.000
    2nd gen BME*time                              -.009


 Constant                  2.618***   3.339***    3.339***
 R2                         .263       .357        .357
 N                         199240     193373      193373
      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. 2005.
•   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). www.engagingcommunities2005.org
•   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): 253-70.
•   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): 617-636.
•   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: 198-206.

				
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