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Gloucestershire Business News

White British earnings still far outstrip ethnic minorities

Huge gaps in household income still exist between different ethnic groups in Britain, according to latest research.

Very significant differences in typical incomes and employment between the white British and Bangladeshi, Pakistani and black populations persist, despite some narrowing of the gaps, says the Resolution Foundation

Typical Bangladeshi households earn £8,900 less on average than white British households, while the black African families earn £5,600 less, according to new analysis from the group.

These gaps are even larger when housing costs are taken into account. Whereas more than half of white British families own their own home, only one in four Bangladeshi and black families do. As a result, the disposable income gap increases to £9,800 when housing costs are considered.

The think tank said the reason for some of these differences could be because of the number of female employment, which is significantly higher in white British households than Bangladeshi ones.

In white British families, 72 per cent of women work, while in Pakistani and Bangladeshi households, that drops to 37 and 35 per cent.

However, despite these large household income gaps, the research did show that they have narrowed in places. Bangladeshi households have experienced the fastest income growth of 38 per cent in the 10 years between 2001-03 and 2014-16, nearly three times the 13 per cent for the white British group.

Employment rates for Pakistani, Bangladeshi and black men have also increased substantially, with growth of 10, 17 and six per cent respectively since 2001-03, while the rate among white men has been flat.

Resolution Foundation senior economic analyst Adam Corlett said: ""Differences in living standards between ethnicities in Britain too often go ignored. This matters because income gaps between different minority ethnic groups and White British households are significant and persistent.

"However, we should be encouraged by the fact that there have been big improvements in some instances, such as the impressive employment gains seen among Black, Bangladeshi and Pakistani men and women.

"Thanks to this and other factors, since the turn of the millennium Bangladeshi and Pakistani households have actually seen the fastest income growth."

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