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

Crawford, Claire and Dearden, Lorraine and Mesnard, Alice and Sianesi, Barbara and Shaw, Jonathan (2010) Ethnic parity in labour market outcomes for benefit claimants in Great Britain. NCRM Working Paper. Department of Quantitative Social Science, Institute of Education. (Unpublished)

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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.

Item Type:Working Paper (NCRM Working Paper)
Subjects:5. Quantitative Data Handling and Data Analysis > 5.17 Quantitative Approaches (other)
ID Code:1288
Deposited By: ADMIN user
Deposited On:23 Jun 2010 10:00
Last Modified:12 Oct 2010 17:45

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