Discrimination in the Labour Market (AQA A Level Economics)

Conditions Necessary for Wage Discrimination

• Wage discrimination occurs when there is a difference in wages between workers with comparable skills in the same job

Conditions Necessary for Wage Discrimination

Gender & Ethnicity Discrimination

Gender Discrimination

• The gender pay gap is a form of discrimination that occurs when a women is paid less than a man who is doing exactly the same job

• The gender pay gap for full-time employees in 2023 was 7.7%. This is due to the following:

  • Women are concentrated in lower-paying occupations. They make up 77% of workers in health and social work

  • Fewer women are in senior and leadership positions

    • In 2022, only 1 in 25 of CEOs in Britain's largest publicly listed companies are women

  • Career progression can be interrupted by maternity leave and family responsibilities

Ethnicity Discrimination 

• Ethnic pay gaps show the difference in the average pay between workers from minority ethnic backgrounds in a workforce, compared to white workers 

  • Ethnic minorities in the UK face both wage and employment disparities 

• Minority groups are more likely to work in lower paid sectors such as hospitality and retail. These sectors also tend to offer fewer opportunities for career advancement

  • E.g In 2023, UK-born black employees had a pay gap of 5.6% less than white employees

    • Non-UK-born black employees has the highest pay gap, earning 12% less than UK-born white workers

• Ethnic minorities are also underrepresented in leadership positions within businesses

  • E.g Only 4.6% of UK leadership roles are held by minority ethnic groups