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In the News

Labour Market - More minority ethnic than white workers paid below UK real living wage

Graham Watson

7th September 2022

Evidence of discrimination in the labour market? The Living Wage Foundation data reported here would imply this - although a lot of the data is anecdotal.

However, the quantitative data shows that BAME workers are more likely to earn below the real living wage than white workers; the sane is also true of female workers relative to men.

The Living Wage Foundation (LWF) says 33% of workers of Bangladeshi heritage, 29% of workers of Pakistani backgrounds and 25% of black workers earn below the real living wage, compared with 20% of white British workers.

But does this necessarily reflect discrimination though?

Are workers homogenous in terms of education, experience and so on? And what about the geographic distribution of workers. The data seems to point to discrimination but it needs to be treated with a degree of caution.

Want to read more? Here is the link to the Living Wage Foundation report.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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