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Ethnic parity in labour market outcomes for benefit claimants in Great Britain

Author

Listed:
  • Claire Crawford

    () (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE; Institute of Education, University of London, 20 Bedford Way, London WC1H 0AL, UK.)

  • Lorraine Dearden

    () (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE; Institute of Education, University of London, 20 Bedford Way, London WC1H 0AL, UK.)

  • Alice Mesnard

    () (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE)

  • Barbara Sianesi

    () (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE)

  • Jonathan Shaw

    () (Institute for Fiscal Studies, 7 Ridgmount Street, London, WC1E 7AE)

Abstract

Accurate 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.

Suggested Citation

  • Claire Crawford & Lorraine Dearden & Alice Mesnard & Barbara Sianesi & Jonathan Shaw, 2010. "Ethnic parity in labour market outcomes for benefit claimants in Great Britain," DoQSS Working Papers 10-07, Department of Quantitative Social Science - UCL Institute of Education, University College London.
  • Handle: RePEc:qss:dqsswp:1007
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    Cited by:

    1. Morando, Greta, 2014. "Partner ethnicity and ethnic minority socio- economic occupation: evidence from the UK," ISER Working Paper Series 2014-29, Institute for Social and Economic Research.

    More about this item

    Keywords

    Non-response; bias; school survey; data linkage; PISA;

    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

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