Indian ethnic group workers in Britain tend to have higher average earnings than their white British counterparts, a new study based on official statistics revealed on Tuesday.
The United Kingdom’s Office for National Statistics (ONS) found in its Ethnicity Pay Gaps in Great Britain: 2018′ analysis that while for the most part ethnic minorities earn 3.8 percent less than white ethnic groups, Indians and Chinese tend to perk up the trend by having higher average earnings.
Bangladeshi and Pakistani ethnic group workers tend to have the lowest average pay compared to their white British counterparts.
“Overall, employees from certain ethnic groups such as Indian and Chinese, have higher average earnings than their white British counterparts,” said Hugh Stickland, senior ONS analyst.
“However, all other ethnic groups have average wages lower than for white British employees, with employees from the Bangladeshi ethnic group having the largest pay gap. However, once characteristics such as education and occupation are taken into account, the pay gap between white British and most other ethnic groups becomes narrower, though significant differences still remain,” he said.
The highest-paid is Chinese ethnic group with receiving 15.75 pounds an hour in 2018, followed by the Indian ethnic group, which rakes in 13.47 pounds an hour, according to the data based on median gross hourly earnings between 2012 and 2018.
“The average employees from the Chinese and Indian ethnic groups have consistently earned more than the average White British employee since 2012. For the Indian ethnic group, the gap has stayed relatively consistent since 2012 and in 2018 stood at negative 12 percent,” the ONS analysis notes.
The category specified as multiple-mixed ethnicity group, came in third with 12.33 pounds hourly pay rate, with the average pay of the White British group found to be 12.03 pounds. The Bangladeshi racial group had the lowest average hourly pay of 9.60 pounds with the second-lowest paid group being of Pakistani origin at 10 pounds an hour.
The Indian ethnic group also registered a high employment rate, of 75.9 percent, comparing favorably to the highest employment rate registered for the Other White category at 81.7 percent. The two ethnic groups with the lowest employment rates are Pakistani and Bangladeshi, at 58.2 percent and 54.9 percent respectively.
A large proportion of those from the Indian ethnic group work in skillful occupations (33 percent), which accounts for the higher average earnings.
Gender Pay Gap
The gender pay gap was also most noticeable among the ethnic groups with higher median gross hourly earnings, with Indian men taking home earnings of 23.3 percent more per hour than Indian women and Chinese men on average earning 19.1 percent more per hour compared to Chinese women.
In contrast, women in the Bangladeshi ethnic group were found to earn more than their male counterparts with a 10.5 percent gap.
The ONS also found that where someone is born can have an influence on how much they are paid. Non-UK born workers belonging to the Indian ethnic group are estimated to take home earnings of 4 percent less than their UK-born White British counterparts.
“By comparing those who were born in the UK and those who were not, it may give us an idea of what sort of effect having a UK education and the higher likelihood of speaking English as a first language may have on those from an ethnic minority background,” the ONS said.
The first-of-its-kind ethnicity pay gap survey is expected to inform future UK government policies around keeping a tab on pay gaps between different segments of British society.
