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Black male graduates face largest pay gap penalties

ETHNIC PAY GAP: Black male graduates face tough penalties

LARGE PAY gaps remain between black and minority ethnic workers and their white counterparts, a new report has revealed.

Among the report’s key findings were that the pay gap was largest for black male graduates.

The report, which looked at data between 1996-97 and 2016-17, found that black male graduates can expect to be paid 17 per cent less than white male graduates after accounting for their background and their job.

The result is the equivalent to being paid £3.90 an hour, or over £7,000 a year for a full-time employee.

Although they were able to control the social backgrounds of the individuals used in their sample and whether they were born abroad, they were not able to identify subject studied, “perceived prestige of particular qualifications” or held a foreign qualification as opposed to a UK one – all factors that could explain the significantly higher penalties black male graduates were subjected to.

The average hourly pay gap between white men and black men was at 19 per cent for the year 2016-2017, according to findings by Resolution Foundation.

The imbalance of pay among women tends to be lesser than that among men.

Penalties for black female non-graduates grew “slightly worse” during the two decades the researchers examined.

The data reveals that significant ethnic differences in pay exist despite education and employment having increased among all ethnic groups.

The authors of the report said: “The real pay gaps and remaining penalties that exist between both graduates and non-graduates of different ethnicities remain too large. And worryingly, we see little evidence of a wholesale improvement over time.”

Earlier this week, ITN published a report on its BAME pay gap, making it one of the first media organisations to do so.

Kathleen Henehan, a research and policy analyst at Resolution Foundation and one of the authors of the report, shared her thoughts on ITN’s data via Twitter. She said: “This was quite a striking story. Reflects our own pay gap findings, released yesterday. Controlling for age, [education], occupation, etc. black male grads still paid 17 per cent less than white counterparts.”

Unlike gender pay gap reporting, which is mandatory, companies are not obliged to make public the details of their ethnic minority pay gap.

A petition is calling on the government to extend mandatory pay gap reporting so that employers are required to publish figures on the difference in pay between ethnicities.

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