<p>We use UK administrative data to estimate the differential in labour market outcomes between Ethnic Minority benefit claimants and otherwise identical Whites. In many cases, Minorities and Whites are simply too different for satisfactory estimates to be calculated and results are sensitive to the methodology used. This calls into question previous results based on simple regression techniques, which may hide the fact that observationally different ethnic groups are being compared by parametric extrapolation. For some groups, however, we could calculate satisfactory results. In these cases, large and significant raw penalties almost always disappear once we appropriately control for pre-inflow characteristics.</p>
Research Fellow Financial Conduct Authority
Jonathan is a Research Fellow at the IFS and a Technical Specialist in the Economics Department at the Financial Conduct Authority.
Research Fellow University College London
Claire is a Research Fellow at IFS, working on the determinants and consequences of participation in childcare and education for parents and children.
Working Paper details
Crawford, C et al. (2009). Ethnic parity in labour market outcomes for benefit claimants. London: IFS. Available at: https://ifs.org.uk/publications/ethnic-parity-labour-market-outcomes-benefit-claimants (accessed: 10 December 2023).
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