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Ethnicity and self-employment earnings in Britain 1973-95

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  • Kenneth Clark
  • Stephen Drinkwater
  • Derek Leslie

Abstract

Using data from the General Household Survey 1973-95, it is shown that there were substantial differences between the earnings of whites and nonwhites in the self-employment sector of the British labour market over the period. Fitting a model of earnings determination which takes account of sample selectivity allows these differences to be decomposed into characteristics and coefficients effects. It turns out that both are important. Further decomposition reveals a crucial role for differences in the amount of schooling received by whites and nonwhites and in the returns to age, gender, marital status and qualifications.

Suggested Citation

  • Kenneth Clark & Stephen Drinkwater & Derek Leslie, 1998. "Ethnicity and self-employment earnings in Britain 1973-95," Applied Economics Letters, Taylor & Francis Journals, vol. 5(10), pages 631-634.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:631-634
    DOI: 10.1080/135048598354302
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    References listed on IDEAS

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    3. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Blackaby, D. H. & Clark, K. & Leslie, D. G. & Murphy, P. D., 1994. "Black-white male earnings and employment prospects in the 1970s and 1980s evidence for Britain," Economics Letters, Elsevier, vol. 46(3), pages 273-279, November.
    6. Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
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