Dr Yaojun Li BA MA MPhil (Oxon) DPhil (Oxon) Reader in Sociological Analysis

1. Labour market attainment of BMEs in Britain-- Evidence from the LFS 1992-2004(For presentation at the ONS/ESDS Conference on LFS on 6 Dec. 2005 at RSS) Dr Yaojun Li BA MA MPhil (Oxon) DPhil (Oxon) Reader in Sociological Analysis Department of Sociology Birmingham University Email: y.li.3@bham.ac.uk Tel: 0121-4158625 Web: http://www.sociology.bham.ac.uk/staff/yaojun_li.htm

2. Research on ethnic disadvantages-- where academic and policy interests converge • Academic interests, esp. since 1991 SAR • The 1965 Race Relations Act, which made discrimination in public places unlawful, but excluding employment and housing • The 1968 Race Relations Act, which made it unlawful to ‘discriminate on grounds of colour, race, or ethnic or national origins in recruitment, training, promotions, dismissals, and terms and conditions of employment’ (Layton-Henry, 1985) • The 1976 Race Relations Act, which extended the definition of discrimination to include indirect discrimination • The 2000 Race Relations (Amendment) Act, placing a general duty on public authorities to eliminate unlawful discrimination • Tony Blair has recently made it an objective to eliminate discrimination, ‘though it is nearly 40 years since the first Race Relations Act, it is clear that racial discrimination in the labour market still persists’. He set the goal, ‘that in ten years’ time, ethnic minority groups should no longer face disproportionate barriers to accessing and realising opportunities for achievement in the labour market’ (Cabinet Office, 2003).

3. Two levels of explanation Personal Level -- Human Capital Ethnic penalties Under-attainment in LM Policy Level -- discrimination ?

4. Essential elements in the human capital theory • Investments in education and training that can improve people’s job-related skills and increase one’s productivity. The investment entails direct costs and foregone earnings, but people may well expect returns which will manifest themselves in enhanced future income streams: reduced economic risks, greater economic stability and steady economic advancement • Knowledge & experience about the labour market • Language proficiency

5. LFS 1992-2004 The panel structure started in 1992 • Income started in W5 in the Winter season of 1992 • If we use a-d for Spring, Summer, Autumn and Winter, then income data are available at W5 for 92d-96d; W1 and W5 for 97a-04d • As W1 is face to face interview and W2-5 are by telephone, so it is always, in my opinion, preferable to use data in W1 wherever possible • In this presentation, I will focus on men aged 16-64

6. Analytical framework

7. Table 1: ethnic profiles Ethnic groups: COT7 year White B Car B Afr Indian Pak/Bang Chinese Other Total 1992 34,165 294 145 652 405 107 348 36,116 1993 34,097 312 132 579 388 124 383 36,015 1994 34,078 285 198 620 419 119 420 36,139 1995 34,089 278 149 601 432 89 422 36,060 1996 33,846 281 208 608 436 97 449 35,925 1997 33,138 256 198 606 414 119 451 35,182 1998 32,422 267 190 651 485 105 470 34,590 1999 31,699 243 170 612 512 85 540 33,861 2000 30,087 257 217 533 497 106 518 32,215 2001 30,392 326 269 614 539 115 549 32,804 2002 29,503 266 247 657 578 137 645 32,033 2003 28,602 261 268 630 588 149 660 31,158 2004 27,547 245 268 628 599 153 691 30,131 Total 413,665 3,571 2,659 7,991 6,292 1,505 6,546 442,229

8. Table 2: ethnic/generation indicator Ethnic-Generation indicator year UKbornW FbornW BME2ndG BME1.5G BME1stG Total 1992 32,790 1,373 110 484 1,355 36,112 1993 32,701 1,393 124 420 1,374 36,012 1994 32,685 1,392 117 453 1,489 36,136 1995 32,740 1,347 140 425 1,405 36,057 1996 32,421 1,425 120 468 1,491 35,925 1997 31,714 1,422 142 446 1,456 35,180 1998 30,875 1,546 145 450 1,572 34,588 1999 30,306 1,389 144 464 1,553 33,856 2000 28,793 1,294 160 482 1,485 32,214 2001 28,894 1,495 144 473 1,794 32,800 2002 28,117 1,384 126 486 1,918 32,031 2003 27,279 1,322 155 485 1,916 31,157 2004 26,212 1,334 134 475 1,975 30,130 Total 395,527 18,116 1,761 6,011 20,783 442,198

9. Table 3: Patterns of Unemployment Employment status: COT4 year Employee Self-Empl Unempl Inactive Total 1992 62.08 13.51 10.61 13.80 100.00 1993 61.33 13.67 10.40 14.59 100.00 1994 60.88 14.01 9.68 15.43 100.00 1995 62.39 13.65 8.57 15.40 100.00 1996 62.99 14.08 7.59 15.34 100.00 1997 64.15 13.55 6.39 15.91 100.00 1998 65.49 12.92 5.75 15.84 100.00 1999 66.25 12.32 5.34 16.09 100.00 2000 65.95 12.97 4.73 16.34 100.00 2001 65.86 12.77 4.70 16.68 100.00 2002 65.93 12.87 4.61 16.59 100.00 2003 65.18 13.72 4.28 16.82 100.00 2004 65.58 13.58 4.01 16.83 100.00 Total 64.19 13.35 6.60 15.85 100.00

10. Table 4 Logit regression on unemployment

11. Table 5: Patterns of class positions Classes: Erikson-Goldthorpe92: COT year I-II IIIa IVabc V-VI VII Total 1992 40.06 8.40 10.46 24.89 16.19 100.00 1993 40.56 8.51 10.87 24.42 15.64 100.00 1994 40.48 8.34 11.16 24.06 15.96 100.00 1995 41.06 8.34 10.87 23.77 15.96 100.00 1996 40.99 8.70 11.08 23.37 15.86 100.00 1997 41.03 8.39 10.00 23.23 17.34 100.00 1998 41.46 8.91 9.24 23.60 16.79 100.00 1999 42.10 9.15 8.53 23.58 16.64 100.00 2000 41.93 9.30 9.17 23.12 16.47 100.00 2001 39.10 6.63 12.54 15.18 26.54 100.00 2002 39.81 6.50 12.31 14.58 26.80 100.00 2003 40.23 6.18 13.38 14.27 25.95 100.00 2004 39.84 6.16 13.22 14.60 26.18 100.00 Total 40.62 7.86 11.10 20.56 19.86 100.00

12. Table 6 Logit regression on unskilled working class

13. Table 7: Patterns of gross weekly income year mean sd min max 1992 333.97 509.70 2.00 23076.00 1993 321.92 324.72 1.00 16938.00 1994 323.60 274.23 1.00 22226.00 1995 337.74 234.52 1.00 10000.00 1996 354.11 308.77 1.00 10385.00 1997 360.91 56.64 1.00 5000.00 1998 381.67 287.04 1.00 9923.00 1999 396.86 276.12 1.00 5385.00 2000 416.34 288.43 5.00 5769.00 2001 440.55 343.25 5.00 13385.00 2002 444.45 311.53 2.00 12758.00 2003 461.40 312.94 5.00 4615.00 2004 475.52 385.88 1.00 15692.00

14. Table 8 Regression on logged weekly gross income

15. My writing on labour market • Li, Y. (2005) ‘Exploring income differentials: a comparison between human and social capital approaches’, presentation at the ESDS Government Research Conference, British Academy, 4 Nov. 2005. • Li, Y.(2006) ‘Social capital, ethnicity and the labour market’, Proceedings of International Conference on Engaging Community, conference jointly organized by the United Nations and the Government of the State of Queensland in Australia (conference 14-17, Aug. 2005). www.engagingcommunities2005.org • Li, Y., Lu, H., and Lu, X. (2006) ‘Income differentials and social justice in contemporary China’, in B.Wu, H. Zhang and A. Flynn (eds): Marginalisation in China: Perspectives on Transition and Globalisation, Aldershot: Ashgate. • Li, Y. and R. O’Leary (2004) ‘Progress in reducing Catholic disadvantages in Northern Ireland’, in Anthony Heath and Sin Yi Cheung (eds) (forthcoming), Ethnic Differences across Countries, Oxford: OUP. • Purdam, K. and Li, Y. with Brown, M. and Wathan, J. (2003) A profile of the housing and socio-economic circumstances of black and minority ethnic people in Wales, Cardiff: National Assembly of Wales. • Li, Y. (2002) ‘Falling off the ladder? Professional and managerial career trajectories and unemployment experiences’, European Sociological Review, 18(3): 253-70. • Li, Y., Bechhofer, F., McCrone, D., Anderson, M. and Stewart, R. (2002) ‘A Divided Working Class? Planning and Career Perception in the Service and Working Classes’, Work, Employment and Society, 16(4): 617-636. • Garrat, D. and Li, Y. (2005) ‘The foundations of experimental/empirical research methods’, in B. Somekh and C. Lewin (eds). Research Methods in the Social Sciences, London: Sage, pp: 198-206.