ETHNICITY AND DISABILITY AND EFFECTS ON EMPLOYMENT & WAGES This section presents the results of further analyses using data from the Labour Force Survey

(LFS) to assess any connection between ethnicity, reported limiting long-term illness (LLI), and ethnic minority population employment and wage rates. The LFS is a large, nationally representative, household-based survey of persons living at private addresses (and other non­

institutional housing) in the United Kingdom. The quarterly LFS, available from Spring 1992, covers a sample of approximately 60,000 households and provides information on individuals’

jobs and personal characteristics.

The previous section demonstrated differences in the health/ disability of the working age population in different ethnic groups. If wage rates and the marginal returns for working are reduced among minority ethnic employees with a disability, this may influence the value of remaining in employment. Hence, the overall pattern of disability in the employed workforce may in its turn be distorted. Given the small size of ethnic sample reporting LLI, LFS data for 1996 through 2001 were pooled together. Over this 6 year period, on average one out of seven people of working age reported LLI. The prevalence of LLI is higher in older versus younger age groups (Table 2.3). Irrespective of gender and age groups, the LLI rate was highest for the Bangladeshi population; followed by those of Pakistani origin. Overall, 3 out of 4 older Bangladeshis (50-64 males or 50-59 females) reported LLI. In contrast, the prevalence of LLI was lowest in the Chinese population.

Table 2.3 Percentage of working age population reporting limiting disability by ethnic groups, pooled LFS data of 1996 to 2001

Ethnic Group

Black-Caribbean 8.6 34.9 15.8 11.2 33.9 14.8 Black-African 8.5 23.5 10.9 9.3 28.7 11.1

It is likely that differences in prevalence and severity of LLI will have some effect on employment status; once LLI becomes more severe individuals may have to curtail their working hours or even leave their job. Table 2.4 shows the activity status of the whole working age population and those who report LLI, for males and females in different ethnic groups.

Overall, 84.1% of all working age males in the sample were employed (with a large majority of these as full time employees); the percentage varied from 84.4 for White males to 75.4 for South Asian males (the lowest level observed was for Bangladeshis - 53.9%). Within these figures, the percentage of males with LLI who continued in full time work was much smaller (29.6%

overall); also, the proportion engaged as full time employees was significantly lower for South Asians (17.1%) than their White counterparts (30.1%). Interestingly, the gap between White and South Asian self-employed was found to be much smaller among those reporting LLI, compared with all males.

Table 2.4 Activity status of working age population (general and reporting limiting disability) by ethnic groups

Ethnic Group All Males Males with Disability

Employed Employed Unem Inactive Unem Inactive

ployed ployed

Employed Employed Unem Inactive Unem Inactive

ployed ployed

Figures 2.4a and 2.4b show work participation rates separately for males and females, for the whole population and those with LLI. For males, just under half (42.1%) of the working age population with LLI are participators. However, for the South Asian and Black Caribbean

males much greater differences are reported, compared with their White counterparts (see Figure 2.4a). The employment scenario for Bangladeshi, Pakistani and Black Caribbean with LLI is the worst (Bangladeshi males also report the lowest LLI work participation rate and the highest unemployment rate).

A ll O th e r C h in e s e B a n g la d e s h i P a k is ta n i In d ia n B la c k - O th e r B la c k - A f r ic a n B la c k - C a r ib b e a n W h ite

l

A ll l

D is a b e d M a e s

0 .0 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 7 0 .0 8 0 .0 9 0 .0

Figure 2.4a Work participation rate – all and disabled males

A ll O ther C hines e B anglades hi P akistani Indian B lack-O ther B lack-A fric an B lack-C aribbean W hite

D isabled All Fem ales

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Figure 2.4b Work participation rate – all and disabled females

For women of working age 16-59, the situation is different from that of their male counterparts since a much higher percentage of women work as part-time rather than full-time employees.

Furthermore, the gap between the percentage of White and South Asian women working part­

time was quite wide (31.5 and 15, respectively). Even so, the pattern shown in Figure 2.4b is particularly extreme for South Asian women. The overall work participation rates for

Bangladeshi and Pakistani women are much lower (11.9% and 28.3%) when compared with their Indian (59.9%) or White (74.3%) counterparts. This presumably reflects the cultural barriers some Muslim women face in going out to work; the majority of Pakistani and Bangladeshi people belong to this religion. With LLI, the employment scenario worsens most for Bangladeshi women and secondly for Indian women. As with men, the overall work participation rate for females with LLI is just under half (37.1%). Thus, for South Asian females the impact of LLI appears to be much greater when compared with their White counterparts (see Figure 2.4b); and barring a few cases, nearly all Bangladeshi women with LLI became inactive.

In summary, the analyses presented in Tables 2.3 and 2.4 reveal that for certain ethnic minority groups, those suffering from LLI appear to be more likely to withdraw from paid employment.

This effect is particularly evident in the Bangladeshi and Pakistani communities, and the impact seems to be more severe on South Asian women due to curtailment of opportunities to undertake part-time work. Differential rates of withdrawal from paid employment, or changes in employment status, may be visible through measurable differences in the effect of long-term illness upon income or wage rates among different ethnic groups.

To explore any differential consequence of disability upon earnings, an attempt was made to compare average real wage rates (£ per hour) for healthy populations and those suffering from LLI across different ethnic groups. These results are presented in Table 2.5. Overall, employees with LLI report lower wage rates than their healthy counterparts; lower by 16.8% for males and 10% for females. However, observable differences in wage rates, especially among male employees, were much higher for Bangladeshi, Pakistani and Chinese males and Chinese females.

Table 2.5 Wage rate (£ per hour) for healthy workers and those reporting limiting disability by ethnic groups

Males Females Ethnic Group

Healthy With limiting

disability % difference Healthy With limiting

disability % difference

White 9.76 8.12 -16.8 7.05 6.35 -9.9

Black-Caribbean 8.3 7.29 -12.2 7.8 6.68 -14.4 Black-African 9.62 7.29 -24.2 7.64 6.92 -9.4

Note: NE refers to not estimated (no disability cases in the sample).

The results of a more detailed multivariate analysis of the influence of disability upon earnings is presented in the Technical Annex 8. This demonstrates that, after controlling for age, education, marital status and employment characteristics, in general, all minority ethnic male and female workers receive much lower wage rate than their White counterparts. As compared to White male workers, the wage rate was half for Bangladeshi and two-thirds for Black African men. For female workers, the wage rate was lower by one-third for Bangladeshis and by one­

fifth for Black African when compared with White women. The presence of a disability reduces

the overall wage rate by 13.7% for males (13.6% Whites, 17% ethnic minorities) and a relatively lower figure of 7% for females (7.2% Whites, 3.6% ethnic minorities though not significant).

In order to explore further the observed differences in wage rate and employment activity status of ethnic minority groups with LLI, it was hoped that the study might be able to obtain some data on occupational injury compensation or disability payments under schemes operated by the Department for Work and Pensions. We were advised, however, that at present the Department does not hold, or analyse, its data classified by ethnic group categories. But, a report published in late 2003 (Molloy et al. 2003) has examined the issue of ethnicity and disability in some detail, focusing primarily on a qualitative enquiry into the experience of members of black and minority ethnic groups with a disability in seeking, or returning to, work. Although the study did not explore the circumstances or reasons for their impairments, the report does note that 'some younger Pakistani and Indian people with disabilities had felt actively discouraged from working' by their families (Molloy et al. 2003:111). This does not, however, provide an explanation for the older population in whom limiting long-term illness and chronic impairment appears to be a particular issue for the ethnic minority workforce.