Ethnic parity in labour market outcomes for benefit claimants in Great Britain
AbstractAccurate estimates of the extent of ethnic parity amongst benefit claimants are very important for policymakers who provide interventions for these groups. We use new administrative data on benefit claimants in Great Britain to document differences in labour market outcomes between Ethnic Minority and White claimants, both before and after controlling for rich observable characteristics. We do so using a variety of methods, from OLS to propensity score matching to difference-in-differences. We find that, in many cases, Minorities and Whites are simply too different for satisfactory estimates to be calculated, and that 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 Income Support and Incapacity Benefit claimants, however, we could calculate satisfactory results. For these groups, large and significant raw penalties almost always disappear once we appropriately control for pre-inflow characteristics.
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Bibliographic InfoPaper provided by Department of Quantitative Social Science - Institute of Education, University of London in its series DoQSS Working Papers with number 10-07.
Length: 30 pages
Date of creation: 18 Jun 2010
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Non-response; bias; school survey; data linkage; PISA;
Find related papers by JEL classification:
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-26 (All new papers)
- NEP-EUR-2010-06-26 (Microeconomic European Issues)
- NEP-LAB-2010-06-26 (Labour Economics)
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