Low pay by ethnicity

Key points

  • The proportion of employees who are paid less than £7.50 per hour is far higher among Pakistanis and Bangladeshi employees than among white British employees

The proportion of employees in London earning under £7.50 an hour, by ethnicity

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What does this graph show?

The differences in the incidence of low pay by ethnicity are quite striking. About two fifths of Pakistani and Bangldeshi employees are paid less than £7.50 per hour, compared with about 10% of White British employees.

At 20%, low pay among Indian employees is roughly twice that compared with White British employees, but still far lower than for Pakistani or Bangladeshi employees.

It is instructive to consider this information alongside that showing the proportion of adults not working by ethnicity. Taken together, they show that Pakistani and Bangladeshi working-age adults have the lowest work rates, and once in work, the highest likelihood of low pay.

Lacking Work, Poverty and Ethnicity

Data used

Labour Force Survey, ONS 2007 to 2009

Indicator last updated: 27 July 2010

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Glossary

Official ethnic classifications:

The current official classification – used in the census and in many of the official datasets used in this research – is based on the following 16-way division:

  • White, comprising White British, White Irish, and White Other
  • Asian or Asian British, comprising Indian, Pakistani, Bangladeshi, and Other Asian
  • Black or Black British, comprising, Black Caribbean, Black African, and Black Other
  • Chinese, and Other
  • Mixed, comprising White and Black Caribbean, White and Black African, White and Asian, and Any Other Mixed

In some of the low income analysis, White British and White Other are grouped together to enable comparisons over time, as the White Other group was only introduced in the relevant dataset in 2001. In some datasets, White Irish are included as White Other. ONS estimate that White Irish make up around one fifth of this larger White Other group.

Moreover, these definitions assign an ethnicity to the household, rather than the individuals in the household, based on the ethnicity of the head of the household.

The 'Other' and 'Mixed' groups are not analysed either collectively or separately on grounds of sample reliability. Given the diversity within the groups, we do not present an analysis of, for instance, All Other, or All Mixed.

Ethnicity:

characteristics of a group with distinctive cultural, linguistic and/or religious ties

Read all glossary definitions

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