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Ethnic parity in labour market outcomes for benefit claimants

Author

Listed:
  • Claire Crawford

    (Institute for Fiscal Studies and University of Birmingham)

  • Lorraine Dearden

    (Institute for Fiscal Studies and University College London)

  • Alice Mesnard

    (Institute for Fiscal Studies and City University London)

  • Jonathan Shaw

    (Institute for Fiscal Studies and Financial Conduct Authority)

  • Barbara Sianesi

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

Abstract

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.

Suggested Citation

  • Claire Crawford & Lorraine Dearden & Alice Mesnard & Jonathan Shaw & Barbara Sianesi, 2009. "Ethnic parity in labour market outcomes for benefit claimants," IFS Working Papers W09/04, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:09/04
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    File URL: http://www.ifs.org.uk/wps/wp0904.pdf
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    More about this item

    Keywords

    Ethnic; employment; benefit; discrimination; matching;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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