2.29 - Ethnic Inequalities in Income, Wealth & Poverty
Key terms in ethnic inequalities
BAME refers to Black, Asian, and Minority Ethnic groups, a term used to describe non-White ethnic minorities in the UK. Social exclusion is the process by which some members of society are denied or excluded from opportunities available to others, for example progression to higher education or access to well-paid secure employment. Poverty is a state where individuals or households lack sufficient income to meet basic needs, often measured relative to the national average.
Ethnic differences in income and wealth
Research highlights significant pay gaps between ethnic groups, even in similar roles.
Income inequalities
Joseph Rowntree Foundation study (2007):
- Men from minority ethnic groups in managerial and professional jobs earned up to 25% less than their White colleagues.
Rowlingson and McKay study:
- White people in managerial positions had greater wealth than BAME groups in similar jobs.
- However, White people in intermediate and routine non-manual jobs had less wealth than Asian people in these positions.
- Black people were the least wealthy across all groups.
Wealth inequalities
Wealth gaps are stark, with BAME households often holding far less in assets than White households.
The National Equality Panel (2010) found that white households had an average net wealth of £221,000, compared to Indian households which were close behind, but Bangladeshi households averaged only £15,000.
Ethnic inequalities in poverty rates
Key statistics on ethnic poverty
- Half of all children from minority ethnic groups in the UK live in poverty.
- BAME elderly people are more likely to experience poverty after retirement.
Research evidence on poverty disparities
Joseph Rowntree Foundation study (2007):
- 40% of minority ethnic communities lived in poverty, significantly higher than the rate for White communities.
- BAME groups were more likely to reside in severely deprived inner-city neighbourhoods, facing high crime and poor access to education and health care.
Platt's research on poverty risks:
- The highest poverty risks were for Bangladeshi, Pakistani, and Black African people, with above-average risks for African-Caribbean, Indian, and Chinese households.
- Over half of Pakistani, Bangladeshi, and Black African children grew up in poverty.
Runnymede Trust findings:
- BAME elderly individuals were more likely to be in poverty after retiring.
Factors contributing to ethnic poverty
Explanations from sociologists
- Flaherty's perspective - BAME groups are more likely to be educationally disadvantaged, unemployed, or in low-paid jobs, increasing their poverty risk.
- Alcock's view on social exclusion - BAME groups experience significant deprivation in housing and neighbourhoods, such as living in overcrowded rented accommodation or terraced housing with issues like damp, poor ventilation, and infestation. This affects children's health and increases exposure to crime, including hate crimes like racial harassment and attacks.
Health impacts of ethnic poverty
- Members of BAME groups report higher rates of ill health compared to White people.
- Mortality rates for BAME groups are similar to those of the White working class, but infant mortality rates are twice as high for Pakistani and Bangladeshi babies compared to working-class White babies.
- Living in deprived areas contributes to these outcomes by limiting access to quality health care and increasing stress-related illnesses.
Social exclusion and its impacts on BAME groups
Key aspects of social exclusion for BAME groups
- Housing and neighbourhood deprivation - BAME households are more likely to live in substandard, overcrowded conditions, which harm physical health.
- Access to services - Exclusion from quality education and health care due to deprived neighbourhoods.
- Employment barriers - BAME groups are more likely to be unemployed or in low-paid jobs.
- Crime and safety - Higher exposure to crime, especially racially motivated incidents.