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Ethnic minority women’s poverty and
     economic well being
     Report for the Government Equalities Office

     By Alita Nandi, ISER and Lucinda Platt, IOE


                Alita Nandi
            ISER, University of Essex




Sheffield Hallam University, 22nd November 2011
Objectives:

   Discuss economic well-being of women across
    different ethnic groups
   Discuss differences in women’s experiences and
    characteristics
   Discuss the link between inequality and poverty
   Discuss these issues for women living with dependant
    children to understand economic well-being of children
    across different ethnic groups
Existing research
   Differences in employment by ethnic groups (Berthoud and
    Blekesaune 2006)
   Differences in pay by ethnic groups (Longhi and Platt 2008, Platt
    2006a)
   Differences in poverty rates at the household level
    (Department of Work and Pensions 2009)
But no research on
 Differences in women’s economic well-being
Data
   Family Resources Survey (FRS)
    –   Continuous household survey
    –   Repeated cross-sectional survey with the financial year as reference period
    –   Stratified, clustered sample which is representative of UK population
        living in private households
    –   Target annual sample size of 29,000 households
    –   Face-to-face interviews of non-dependant adults over 16 years of age
   Households Below Average Income (HBAI)
    ―   dataset containing variables derived from the FRS
   Analysis sample:
    –   Pooled, 2003/04 to 2007/08
    –   without Northern Ireland
Sample
                                  All Adults                    Female/                    Children
                                 (% of total)                   Male ratio               (% of adults)
White British                 196542             89.06%               1.12                    58550    30%
Indian                            3767             1.71%              1.05                     1470    39%
Pakistani                         2260             1.02%              1.05                     1640    73%
Bangladeshi                         706            0.32%              1.11                      605    86%
Chinese                             732            0.33%              1.33                      207    28%
Black Caribbean                   2009             0.91%              1.32                      938    47%
Black African                     1836             0.83%              1.28                     1353    74%
Total                       220679# 100.00%#                          1.13                    69142#   31%

 Notes: Unweighted, statistics except for female-male ratio which is weighted
 #This total includes persons in “mixed” and “other” categories, excluded from all analyses
We assigned
                                                                                                              ethnicity of

Sample                                                                                                          head of
                                                                                                             household to
                                                                                                                children

                                  All Adults                    Female/                    Children
                                 (% of total)                   Male ratio               (% of adults)
White British                 196542             89.06%               1.12                    58550    30%
Indian                            3767             1.71%              1.05                     1470    39%
Pakistani                         2260             1.02%              1.05                     1640    73%
Bangladeshi                         706            0.32%              1.11                      605    86%
Chinese                             732            0.33%              1.33                      207    28%
Black Caribbean                   2009             0.91%              1.32                      938    47%
Black African                     1836             0.83%              1.28                     1353    74%
Total                       220679# 100.00%#                          1.13                    69142#   31%

 Notes: Unweighted, statistics except for female-male ratio which is weighted
 #This total includes persons in “mixed” and “other” categories, excluded from all analyses
Number of children per household
2.5
      2
1.5
      1
.5
      0




          White British   Indian   Pakistani   Bangladeshi   Chinese   Black-Caribbean   Black-African
Objectives:

   Discuss economic well-being of women across
    different ethnic groups
   Discuss differences in women’s experiences and
    characteristics
   Discuss the link between inequality and poverty
   Discuss these issues for women living with dependant
    children to understand economic well-being of children
    across different ethnic groups
Children live primarily in households with at
least one woman
  100




                  Family composition of households with dependant children
    80
    60
    40
    20
        0




            All      White British   Indian   Pakistani   Bangladeshi   Chinese   Black-Caribbean Black-African


                         only men in HH                                       only women in HH
                         both men and women in HH
Different income measures

   Individual income: Net (of taxes) individual
    income that includes tax credits received as
    benefits
    ̵ Indicator of her personal resources and financial control
   Household income: Net (of taxes) total
    household income equivalised by the OECD
    equivalence scale, before housing costs
    ―   income pooling & income sharing
    ―   Indicator of actual economic position
Different income measures
   Material deprivation (only for families with
    children): prevalence weighted deprivation
    scores
    ̵ Good indicator of persistent poverty
     ̵ Not direct measures of poverty
      ̵ Complements income poverty measures.
Different methods of summarising group’s
economic well-being
   Mean income: Average income
   Median income: Income below which 50% of
    the sample’s income lies
    ̵ Not sensitive to extreme values as the mean is

   Within and between group income inequality:
    gini coefficient, mean logarithmic deviation
    ̵ If incomes within the group are not similar, then these
      measures summarise that information
Different methods of summarising group’s
economic well-being

   Poverty rate: Proportion below the poverty
    threshold (yearly) which is 60% of the median of
    equivalised household incomes of the population
    for that year
    ̵ Direct measure of economic disadvantage for the
      group
Average individual and household incomes
Chinese                                    Men                                               Men
women
                White British                                         Chinese

                    Chinese                                              Indian
High                   Indian                                     White British
mean            Black-African                                     Black-African
individual   Black-Caribbean                                   Black-Caribbean

incomes             Pakistani                                         Pakistani
                Bangladeshi                                       Bangladeshi

Gain from                                 Women                                             Women

income              Chinese                                           Chinese

pooling      Black-Caribbean                                             Indian
                Black-African                                     White British
                White British                                     Black-African
                       Indian                                  Black-Caribbean
                Bangladeshi                                           Pakistani
                    Pakistani                                     Bangladeshi

                                0   100    200     300   400                      0   100   200     300   400
                           Individual income (£)                      Household equivalent income (£)
Average individual and household incomes
Black                                      Men                                               Men
Caribbean
                White British                                         Chinese
& Black             Chinese                                              Indian
African                Indian                                     White British
women           Black-African                                     Black-African
             Black-Caribbean                                   Black-Caribbean

High                Pakistani                                         Pakistani

mean            Bangladeshi                                       Bangladeshi

individual                                Women                                             Women

incomes             Chinese                                           Chinese
             Black-Caribbean                                             Indian

Hardly          Black-African                                     White British

gain from       White British                                     Black-African
                       Indian                                  Black-Caribbean
income
                Bangladeshi                                           Pakistani
pooling             Pakistani                                     Bangladeshi

                                0   100    200     300   400                      0   100   200     300   400
                           Individual income (£)                      Household equivalent income (£)
Average individual and household incomes
White                                      Men                                               Men
British &
                White British                                         Chinese
Indian              Chinese                                              Indian
women                  Indian                                     White British
                Black-African                                     Black-African
Low mean     Black-Caribbean                                   Black-Caribbean

individual          Pakistani                                         Pakistani

incomes         Bangladeshi                                       Bangladeshi

                                          Women                                             Women

Gain from           Chinese                                           Chinese

income       Black-Caribbean                                             Indian

pooling         Black-African                                     White British
                White British                                     Black-African
                       Indian                                  Black-Caribbean
                Bangladeshi                                           Pakistani
                    Pakistani                                     Bangladeshi

                                0   100    200     300   400                      0   100   200     300   400
                           Individual income (£)                      Household equivalent income (£)
Average individual and household incomes
Banglades                                  Men                                               Men
hi and
                White British                                         Chinese
Pakistani           Chinese                                              Indian
women                  Indian                                     White British
                Black-African                                     Black-African
Low mean     Black-Caribbean                                   Black-Caribbean

individual          Pakistani                                         Pakistani

incomes         Bangladeshi                                       Bangladeshi

                                          Women                                             Women

Gain from           Chinese                                           Chinese

income       Black-Caribbean                                             Indian

pooling         Black-African                                     White British

BUT…            White British                                     Black-African
                       Indian                                  Black-Caribbean
                Bangladeshi                                           Pakistani
                    Pakistani                                     Bangladeshi

                                0   100    200     300   400                      0   100   200     300   400
                           Individual income (£)                      Household equivalent income (£)
Average individual and household incomes:
    for men & women with dependant children
BC & BA
                                            Men                                              Men


High                Chinese                                           Chinese

                White British                                     White British
mean                   Indian                                            Indian
individual   Black-Caribbean                                   Black-Caribbean
incomes         Black-African                                     Black-African
                    Pakistani                                         Pakistani

Lose from       Bangladeshi                                       Bangladeshi

income                                    Women                                             Women

pooling      Black-Caribbean                                          Chinese
                    Chinese                                       White British
                Black-African                                            Indian

                White British                                  Black-Caribbean
                       Indian                                     Black-African
                Bangladeshi                                           Pakistani
                    Pakistani                                     Bangladeshi

                                0   100   200      300   400                      0   100   200     300   400
                           Individual income (£)                      Household equivalent income (£)
Gains from income pooling and income sharing
 Comparing women’s individual and household incomes:
    Black Caribbean and Black African women
     – high mean individual incomes
     – hardly gain from income pooling
     – Women with dependent children LOSE from pooling
    Chinese women:
     – high average individual incomes
     – gain from income pooling
    White British and Indian women:
     – low average individual incomes
     – gain from income pooling
    Bangladeshi & Pakistani women:
     – low average individual incomes
     – gain from income pooling BUT…
Ethnic composition of spouse/partners

                    All

          White British

                Indian

             Pakistani

          Bangladeshi

              Chinese

       Black-Caribbean

         Black-African


                          0       .2          .4         .6             .8      1
                                       Proportion of women in couples

                   Partner of same ethnic group         White British partner
Family composition of women by ethnic groups

     White British

            Indian

         Pakistani

     Bangladeshi

          Chinese

  Black-Caribbean

     Black-African

                     0        20         40           60          80         100
                                              Percent (%)

       single, no children                     single, with children
       one or more adults, no children         one or more adults, and children
Family composition of women with dependent
children by ethnic groups
     White British

            Indian

         Pakistani

     Bangladeshi

         Chinese

  Black-Caribbean

     Black-African

                     0      20          40           60     80   100
                                             Percent (%)

                         single, with children
                         one or more adults, and children
Number of children per household
2.5
      2
1.5
      1
.5
      0




          White British   Indian   Pakistani   Bangladeshi   Chinese   Black-Caribbean   Black-African
Individual incomes of men and women
                                Men                                              Men
                                                                                        Net
                                                                                        income
     White British                                          Chinese

         Chinese                                               Indian
                                                                                        gap
            Indian                                      White British
     Black-African
                                                      White British
                                                      Black-African
                                                                                        36.7
  Black-Caribbean                                     Chinese
                                                     Black-Caribbean                    24.9
         Pakistani                                         Pakistani
     Bangladeshi
                                                      Indian
                                                        Bangladeshi
                                                                                        43.8
                               Women                  Black African            Women    27.0
         Chinese                                      Black Caribbean
                                                          Chinese                       24.9
  Black-Caribbean                                              Indian
     Black-African
                                                      Pakistani
                                                       White British
                                                                                        62.0
     White British                                    Bangladeshi
                                                       Black-African                    63.6
            Indian                                   Black-Caribbean
     Bangladeshi                                    Men on an average have higher individual
                                                          Pakistani
         Pakistani
                                                    incomes than women in the same ethnic
                                                        Bangladeshi

                     0   100    200     300   400   groups          0 100 200 300   400
                Individual income (£)                       Household equivalent income (£)
Women with dependent children

   Men and women with children have higher individual incomes
    (except Bangladeshi and Pakistani women)
   But lower household incomes on average than those without
    (except Chinese women).
   Women with children are more likely to be poor than women
    without children.
   They are more likely to be younger
Median individual and household incomes
Median                                           Men                                             Men
incomes are
                    White British                                         Chinese
lower than                 Indian                                     White British
mean incomes            Chinese                                              Indian
for all groups      Black-African                                  Black-Caribbean
suggesting       Black-Caribbean                                      Black-African

income higher       Bangladeshi                                           Pakistani

proportion              Pakistani                                     Bangladeshi

with low                                        Women                                           Women

incomes          Black-Caribbean                                          Chinese
                    Black-African                                     White British
                        Chinese                                              Indian
                    White British                                  Black-Caribbean
                           Indian                                     Black-African
                    Bangladeshi                                           Pakistani
                        Pakistani                                     Bangladeshi

                                    0     100          200   300                      0   100          200   300
                               Individual income (£)                      Household equivalent income (£)
Median individual and household incomes
Rank of                                        Men                                             Men
Chinese
                  White British                                         Chinese
women w.r.t.             Indian                                     White British
median                Chinese                                              Indian
individual        Black-African                                  Black-Caribbean
income         Black-Caribbean                                      Black-African

is lower          Bangladeshi                                           Pakistani
                      Pakistani                                     Bangladeshi

                                              Women                                           Women

               Black-Caribbean                                          Chinese
                  Black-African                                     White British
                      Chinese                                              Indian
                  White British                                  Black-Caribbean
                         Indian                                     Black-African
                  Bangladeshi                                           Pakistani
                      Pakistani                                     Bangladeshi

                                  0     100          200   300                      0   100          200   300
                             Individual income (£)                      Household equivalent income (£)
Women’s individual income by ethnic groups
.004




                                                                       .004
                        White British                      White British                       White British




                                  .004
                        Indian                             Pakistani                           Bangladeshi
.003




                                                                       .003
                                  .003
.002




                                                                       .002
                                  .002
.001




                                                                       .001
                                  .001
       0




                                         0




                                                                              0
           0   400      800       1200       0   400      800          1200       0   400      800        1200

                £ per week                        £ per week                           £ per week
.004




                                  .004




                                                                       .004
                        White British                  White British                           White British
                        Chinese                        Black Caribbean                         Black African
.003




                                  .003




                                                                       .003
.002




                                  .002




                                                                       .002
.001




                                  .001




                                                                       .001
       0




                                         0




                                                                              0


           0   400      800       1200       0   400      800          1200       0   400      800        1200

                £ per week                        £ per week                           £ per week
Percent (%)




                                                                 Men:
                                                                 White
                                                                 British

                                                                 87.2%
                                    10   20   30     40     50   60      70
   W                            0
        hi
           te
                Br
                   it   is
                          h
                In
                     di
                       an
         Pa
                ki
                   st
   Ba                 a   ni
         ng
            l
                                                                                                 All women



                ad
                     es
                       hi
             C
Bl            hi
  ac            ne
       k-               se
         C
          ar
                ib
                   b   ea
   Bl
     ac                     n
             k-                               Percent (%)
               Af
                    ric
                       an




                                    10   20   30     40     50   60      70
   W                            0
        hi
           te
                Br
                   it   is
                          h
                In
                     di
                       an
         Pa
                ki
                   st
   Ba                 a   ni
         ng
            l   ad
                     es
                       hi
             C
Bl            hi
  ac            ne
       k-               se
         C
          ar
                ib
                   b   ea
   Bl                       n
     ac
             k-
                                                                                                 Women with dependant children




               Af
                    ric
                       an
                                                                                                                                 Proportion of women employed, by ethnic group

                                                                      White British Men: 66.6%
Percent (%)




                                           10   20   30    40      50   60   70
       W                               0
            hi
               te
                       Br
                          it   is
                                 h
                       In
                            di
                              an
                                                                                                                  ethnic group


              P
                   ak
                     is
                       ta
       B                        ni
            an
              gl
                                                                                  All women




                       ad
                            es
                              hi
                  C
B                  hi
    la               ne
       c   k-                  se
             C
                  ar
                       ib
                          b
      B                       ea
           la                      n
              c   k-
                    A                                Percent (%)
                        fri
                              ca
                                 n




                                           10   20   30    40      50   60   70
       W                               0
            hi
               te
                       Br
                          it   is
                                 h
                       In
                            di
                              an
              P
                   ak
                     is
                       ta
       B                        ni
            an
              gl
                       ad
                            es
                              hi
                  C
B                  hi
    la               ne
       c   k-                  se
             C
                  ar
                       ib
                          b
      B                       ea
           la                      n
              c   k-
                                                                                  Women with dependant children




                    A
                        fri
                              ca
                                 n
                                                                                                                  Proportion of 25-64 year old women employed, by
Women’s household income by ethnic groups
  .004




                          White British                                     White British                                      White British
                          Indian                                            Pakistani                                          Bangladeshi
  .003




                                    .001 .002 .003 .004




                                                                                        .001 .002 .003 .004
  .002
  .001

         0




                                                          0




                                                                                                              0
             0   400      800          1200                   0   400      800              1200                  0   400      800        1200

                  £ per week                                       £ per week                                          £ per week
  .004




                                    .004




                                                                                        .004
                          White British                                 White British                                          White British
                          Chinese                                       Black Caribbean                                        Black African
  .003




                                    .003




                                                                                        .003
  .002




                                    .002




                                                                                        .002
  .001




                                    .001




                                                                                        .001
         0




                                                          0




                                                                                                              0



             0   400      800          1200                   0   400      800              1200                  0   400      800        1200

                  £ per week                                       £ per week                                          £ per week
Individual income inequalities within ethnic groups

                                  Mean logarithmic deviation
                                           Men and women      Women living
                  All men and                 living with    with dependant
                    women       All women dependant children     children
White British           0.42         0.39          0.44                   0.35
Indian                  0.73         0.82                  High           0.71
                                                   0.72
                                                           individual
Pakistani               0.88         0.99          0.79                   0.79
                                                           income
Bangladeshi             0.77         0.80          0.71    inequalities   0.67
Chinese                 0.78         0.87          0.88    driven by      1.05
                                                           zero
Black Caribbean         0.44         0.39          0.48                   0.28
                                                           incomes
Black African           0.64         0.61          0.62                   0.65
Household income inequalities within ethnic groups

                    Mean logarithmic deviation
                                                     Household
                                 Men and women       income
                  All men and       living with      inequalities
                    women       dependant children   lower than
White British        0.22              0.33          individual
                                                     income
Indian               0.30              0.37          inequalities.
Pakistani            0.26              0.33
Bangladeshi          0.18              0.30
Chinese              0.45              0.41
Black Caribbean      0.23              0.32
Black African        0.28              0.35
Individual Income gaps for women of different
   ethnic groups vis-à-vis White British Men
    White British women

          Indian women

       Pakistani women

    Bangladeshi women

        Chinese women

 Black Caribbean women

   Black African women
                           0      10     20         30       40        50    60   70
                                             Individual Income Gap (%)
                                                       Women
                                           vis-a-vis all White British Men

                          95% confidence interval          Mean gap
Individual Income gaps for women of different
   ethnic groups vis-à-vis White British Men
    White British women

          Indian women

       Pakistani women                                                                 All income
                                                                                       gaps are
    Bangladeshi women                                                                  negative and
                                                                                       significantly
        Chinese women                                                                  different
                                                                                       from zero
 Black Caribbean women

   Black African women
                           0      10     20         30       40        50    60   70
                                             Individual Income Gap (%)
                                                       Women
                                           vis-a-vis all White British Men

                          95% confidence interval          Mean gap
Individual Income gaps for women of different
   ethnic groups vis-à-vis White British Men
    White British women

          Indian women

       Pakistani women                                                                 Pay gaps are
                                                                                       16-17% for
    Bangladeshi women                                                                  women with
                                                                                       full time
        Chinese women                                                                  employment
                                                                                       Source: Longhi
 Black Caribbean women                                                                 and Platt 2008


   Black African women
                           0      10     20         30       40        50    60   70
                                             Individual Income Gap (%)
                                                       Women
                                           vis-a-vis all White British Men

                          95% confidence interval          Mean gap
Income gaps and pay gaps for women of different
ethnic groups vis-à-vis White British Men
                                                     Rank by pay gaps# Rank by income gaps
  Chinese                                                          1            1
  Black Caribbean                                                  2            1
  Indian                                                           3            5
  White British                                                    4            4
  Bangladeshi                                                      5            6
  Black African                                                    6            3
  Pakistani                                                        7            7


  #Source:   Longhi and Platt 2008 using the Labour Force Survey
Household Income and % Poor

                                              % poor
                            0   10         20     30     40         50

         Black African W

       Black Caribbean W

              Chinese W

          Bangladeshi W

             Pakistani W

                Indian W

          White British W


          White British M
                            0        100        200           300
                                     Mean income (£ pw)

                      Household Income          % poor
Household Income and % Poor

                                              % poor
                            0   10         20     30     40         50

         Black African W

       Black Caribbean W

              Chinese W

          Bangladeshi W

             Pakistani W

                Indian W

          White British W


          White British M
                            0        100        200           300
                                     Mean income (£ pw)

                      Household Income          % poor
Household Income and % Poor

                                              % poor
                            0   10         20     30     40         50

         Black African W

       Black Caribbean W

              Chinese W

          Bangladeshi W

             Pakistani W

                Indian W

          White British W


          White British M
                            0        100        200           300
                                     Mean income (£ pw)

                      Household Income          % poor
Poverty Rates

                        All adults      Women           Men         Women     Men          Children
                                                                    With dependant
                                                                       Children
White British               15.5           16.7         14.1          17.4          13.3     19.4
Indian                      21.9           23.0         20.8          26.0          24.3     27.4
Pakistani                   45.9           46.0         45.7          49.8          49.3     54.6
Bangladeshi                 50.1           51.9         48.2          57.7          54.6     64.2
Chinese                     20.5           20.6         20.5          24.7          20.6     31.3
Black-Caribbean             22.2           23.5         20.7          24.6          23.0     25.6
Black-African               23.9           22.7         25.1          28.8          27.3     34.7
Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8

                    Child poverty rates are higher
                   than that of women or men in
                       the same ethnic group
Poverty Rates

                        All adults      Women           Men         Women     Men          Children
                                                                    With dependant
                                                                       Children
White British               15.5           16.7         14.1          17.4          13.3     19.4
Indian                      21.9           23.0         20.8          26.0          24.3     27.4
Pakistani                   45.9           46.0         45.7          49.8          49.3     54.6
Bangladeshi                 50.1           51.9         48.2          57.7          54.6     64.2
Chinese                     20.5           20.6         20.5          24.7          20.6     31.3
Black-Caribbean             22.2           23.5         20.7          24.6          23.0     25.6
Black-African               23.9           22.7         25.1          28.8          27.3     34.7
Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8
Poverty Rates

                        All adults      Women           Men         Women     Men          Children
                                                                    With dependant
                                                                       Children
White British               15.5           16.7         14.1          17.4          13.3     19.4
Indian                      21.9           23.0         20.8          26.0          24.3     27.4
Pakistani                   45.9           46.0         45.7          49.8          49.3     54.6
Bangladeshi                 50.1           51.9         48.2          57.7          54.6     64.2
Chinese                     20.5           20.6         20.5          24.7          20.6     31.3
Black-Caribbean             22.2           23.5         20.7          24.6          23.0     25.6
Black-African               23.9           22.7   <     25.1          28.8          27.3     34.7
Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8


                    Women’s poverty rates are
                  almost always higher than that
                  of men the same ethnic group
Individual income composition
                                              Women

      White British

             Indian

          Pakistani

      Bangladeshi

          Chinese

   Black-Caribbean

      Black-African

                      0      20          40         60           80       100
                                           Percent share

            Earnings      Self-employment                Pension income
            Benefits      Tax credits as benefits        Other income
Age composition of all women by ethnic groups
Overall             White British
women in all
non-white                  Indian
groups are              Pakistani
more likely to
                    Bangladeshi
be younger.
More than               Chinese
75% of EM
                 Black-Caribbean
women are 54
years or less       Black-African
while only
59% of white                        0       20           40             60       80   100

women are 55                                                  Percent (%)

or less                             16-24        25-34          35-44        45-54
                                    55-64        65-74          75+
Age composition of women with dependent children by
 ethnic groups
As expected
                  White British
women with
dependent                Indian
children are          Pakistani
relatively
younger:          Bangladeshi
around 80%            Chinese
are 44 years
or less        Black-Caribbean

                  Black-African

                                  0       20           40             60       80   100
                                                            Percent (%)

                                  16-24        25-34          35-44        45-54
                                  55-64        65-74          75+
Age-income profiles
   Very little variation in income gaps between ethnic
    groups for different age groups
   Except at very young or very old ages
                                   Individual Income (£ per week)                                     Equivalent Household Income (£ per week)
      100 150 200 250 300 350




                                                                                100 150 200 250 300 350
                          50




                                                                                                    50




                                16-24   25-34 35-44 45-54   55-64 65-74   75+                             16-24   25-34   35-44   45-54   55-64   65-74   75+
                                                 age in years                                                                 age in years


                                                      White British                 Pakistani                                Bangladeshi
Women’s income composition
Individual Income
 Earnings
    –   important source for all, 50-60%
    –   except for Bangladeshi & Pakistani women, 30-40% & 25-30%
        for women with dependent children
   Non-pension benefits and tax credits
    –   Important for Bangladeshi & Pakistani women, 45-50%
    –   More so for Bangladeshi and Pakistani women with dependant
        children, 10% higher
    –   Relatively important for Caribbean and Black African women,
        20-25%
Women’s income composition
Individual Income
 Pension
    –   Important for White British women, 20%
   Other income and self-employment income
    –   Important source for Chinese women


Household Income
 Labour income more important, and
 Non-pension benefits & tax credits less important
Contribution of different income sources to
income inequality
   Labour income
    – most important contributing factor, more so for
      men
    – Self-employment disproportionately higher
    – More so for women with dependent children, less so
      for men with dependent children
   Non-pension benefit income & tax credits
    –   reduces income inequality a little, 2%
Material deprivation scores
 21 questions of the following type, where 11 are about adults or
family circumstances and 10 only about children
 Do you [and your family/and your partner] have a holiday away
from home for at least one week a year, whilst not staying with
relatives at their home?
―   We/I have this
―   We/I would like to have this but cannot afford this at the moment
―   We/I do not want / need this at the moment
―   [Does not apply]
  Total deprivation score is a prevalence weighted sum of individual
item scores (1 if cannot afford, 0 otherwise). Note only available for families
with children.
Material deprivation items: 11 adult items
Do you
 have a holiday away from home for at least one week a year, whilst not staying with
   relatives at their home?
 have friends or family around for a drink or meal at least once a month?
 have two pairs of all weather shoes for [Name of all adults in Benefitunit]?
 have enough money to keep your home in a decent state of decoration?
 have household contents insurance?
 make regular savings of £10 a month or more for rainy days or retirement?
 replace any worn out furniture?
 replace or repair major electrical goods such as a refrigerator or a washing machine,
   when broken?
 have a small amount of money to spend each week on yourself (not on your family)?
 have a hobby or leisure activity?
 in winter, are you able to keep this accommodation warm enough?
Material deprivation items: 10 children items
Does your child have do your children have
 a family holiday away from home for at least one week a year?
 leisure equipment such as sports equipment or a bicycle?
 celebrations on special occasions such as birthdays, Christmas or other religious
   festivals?
 an outdoor space or facilities nearby where they can play safely?
Does your child/do your children
 go swimming at least once a month?
 do a hobby or leisure activity?
 have friends around for tea or a snack once a fortnight?
 go to toddler group / nursery / playgroup at least once a week.?
 go on school trips?


   Are there enough bedrooms for every child of 10 or over of a different sex to have
    their own bedroom?
Distribution of deprivation scores of women with
  children by ethnic groups
                       White British                  Indian                    Pakistani
              .6



Higher
              .4




proportion
with low
              .2




deprivation
               0




                       Bangladeshi                   Chinese                 Black Caribbean
scores:
              .6




White
              .4




British,
Indian and
              .2




Chinese
               0




women                                                                    0         50          100
                       Black African                  Total
              .6
              .4
              .2
               0




                   0        50         100 0            50         100
                                               Deprivation score
Distribution of deprivation scores of women with
   children by ethnic groups
                        White British                  Indian                      Pakistani
               .6



Higher
               .4




proportion
with high
               .2




deprivation
                0




                        Bangladeshi                   Chinese                   Black Caribbean
scores:
               .6




Bangladeshi,
               .4




Black
African,
               .2




Pakistani
                0




and Black                                                                 0           50          100
                        Black African                  Total
Caribbean
               .6




women.                                                                        Highest deprivation scores for
               .4




                                                                              Bangladeshi and Black African
               .2




                                                                              women
                0




                    0        50         100 0            50         100
                                                Deprivation score
Distribution of deprivation scores of children by
     ethnic groups
                        White British                  Indian                     Pakistani
Same picture
               .5



as for
women.

Bangladeshi
                0




                        Bangladeshi                   Chinese                  Black Caribbean
and Black
               .5




African
children
have highest
                0




deprivation             Black African                  Total
                                                                          0          50          100

scores                                                                        Nearly half of Bangladeshi
               .5




                                                                              children have incomes < 70% of
                                                                              Median
                                                                              AND deprivation scores >25
                0




                    0        50         100 0            50         100
                                                Deprivation score
                                                                              Compared to 16-17% of all
                                                                              children
Distribution of child poverty indicator by ethnic
groups           Child poverty indicator: Family deprivation
                     score>25 & household income <70% of median

                  Children     Women       Men
                               Living with children
Bangladeshi            48.8%       40.4%      39.2%
Pakistani              39.1%       30.9%      29.5%
Black African          33.5%       29.3%      20.2%        16-17% of
                                                           all
Black Caribbean        21.0%       20.4%      15.2%
                                                           children
White British          14.5%       12.9%       7.1%        fall into
Indian                 13.4%       11.9%      10.1%        this
                                                           category
Chinese                 8.3%       10.1%       6.5%        (DWP
                                                           2009)
Deprivation scores by poverty status
                   Not poor                                             Poor
  Black African                                              Black African

Black Caribbean                                            Black Caribbean

       Chinese                                                      Chinese

   Bangladeshi                                                Bangladeshi

      Pakistani                                                  Pakistani

         Indian                                                      Indian

   White British                                              White British

                   0         10          20           30       40             0         10          20           30   40
                                  Deprivation Score                                          Deprivation Score

                       Men          Women                                         Men          Women
Link between income inequality of women and poverty
  How would poverty rates change if group income inequalities were
  eliminated?
  Simulate women’s individual and household incomes to
  eliminate within and between group income inequalities
   Assign to all women the mean income of women in her
     ethnic group
   Assign age-adjusted mean income of White British
     women to all women
   Do not change men’s incomes
   Re-calculate household incomes and the new poverty
     lines and poverty status
Women’s new simulated poverty rates
100
  80
  60
  40
  20
      0




          All                   Indian                     Bangladeshi             Black Caribbean
                White British                  Pakistani                 Chinese                 Black African
                                                Ethnic group
                         New poverty rates using new poverty line after equialisation of

                       Within group household income               Within group individual income
                       Between group household income              Between group individual income
                       Original Poverty Rate
Men’s new simulated poverty rates
100
  80
  60
  40
  20
      0




          All                   Indian                     Bangladeshi             Black Caribbean
                White British                  Pakistani                 Chinese                 Black African
                                                Ethnic group
                         New poverty rates using new poverty line after equialisation of

                       Within group household income               Within group individual income
                       Between group household income              Between group individual income
                       Original Poverty Rate
Eliminating    Eliminating     Eliminating     Eliminating
                        within group   within group   between group   between group
                         household      individual      household       individual
                           income         income         income          income
                         inequality     inequality      inequality      inequality
All men and women
Move out of poverty           14%            10%            14%             10%
Move into poverty              1%             4%             1%              5%
Remain in poverty              2%             6%             2%              7%
Remain out of poverty         83%            80%            82%             79%
Women
Move out of poverty           17%            13%            18%             12%
Move into poverty              0%             5%             0%              7%
Remain in poverty              0%             5%             0%              6%
Remain out of poverty         82%            77%            82%             75%
Men
Move out of poverty           11%             8%            11%              8%
Move into poverty              2%             2%             2%              2%
Remain in poverty              5%             8%             4%              7%
Remain out of poverty         83%            82%            82%             83%
Eliminating    Eliminating     Eliminating     Eliminating
                         within group   within group   between group   between group
                          household      individual      household       individual
                            income         income         income          income
                          inequality     inequality      inequality      inequality
All men and women with
dependant children
Move out of poverty             17%             7%            18%             10%
Move into poverty                1%            10%             0%              6%
Remain in poverty                1%            10%             0%              8%
Remain out of poverty           82%            72%            82%             76%
Women with dependant
children
Move out of poverty             19%             8%            19%             10%
Move into poverty                0%            14%             0%              8%
Remain in poverty                1%            12%             0%              9%
Remain out of poverty           80%            66%            81%             72%
Children
Move out of poverty             19%             8%            20%             10%
Move into poverty                1%            11%             0%              7%
Remain in poverty                1%            13%             0%             10%
Remain out of poverty           79%            69%            79%             72%
To conclude
 Diversity of women’s income within and
  between ethnic groups
 But a substantial proportion of women are poor
  across different ethnic groups to varying degree
 Women’s poverty is very closely related to
  poverty of children as most children live with at
  least one woman guardian
To conclude
 Poverty is determined not just by women’s
  wages, or even their total income
 Who they live with matters: income pooling
  (sharing rule) and family size
 Different patterns of women’s own income and
  income pooling across groups
 We need to measure economic well-being
  directly
To conclude
 Bangladeshi & Pakistani women: low own
  income, low income of spouses
 Black Caribbean and African women: high own
  income, relatively lower income of
  spouses/partner, single mothers
 Indian and Chinese women: gain from income
  pooling on average, but high within group
  income inequality
Thank You!

Email: anandi@essex.ac.uk, L.Platt@ioe.ac.uk

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Alita Nandi at SHU 22 Nov 2011

  • 1. Ethnic minority women’s poverty and economic well being Report for the Government Equalities Office By Alita Nandi, ISER and Lucinda Platt, IOE Alita Nandi ISER, University of Essex Sheffield Hallam University, 22nd November 2011
  • 2. Objectives:  Discuss economic well-being of women across different ethnic groups  Discuss differences in women’s experiences and characteristics  Discuss the link between inequality and poverty  Discuss these issues for women living with dependant children to understand economic well-being of children across different ethnic groups
  • 3. Existing research  Differences in employment by ethnic groups (Berthoud and Blekesaune 2006)  Differences in pay by ethnic groups (Longhi and Platt 2008, Platt 2006a)  Differences in poverty rates at the household level (Department of Work and Pensions 2009) But no research on  Differences in women’s economic well-being
  • 4. Data  Family Resources Survey (FRS) – Continuous household survey – Repeated cross-sectional survey with the financial year as reference period – Stratified, clustered sample which is representative of UK population living in private households – Target annual sample size of 29,000 households – Face-to-face interviews of non-dependant adults over 16 years of age  Households Below Average Income (HBAI) ― dataset containing variables derived from the FRS  Analysis sample: – Pooled, 2003/04 to 2007/08 – without Northern Ireland
  • 5. Sample All Adults Female/ Children (% of total) Male ratio (% of adults) White British 196542 89.06% 1.12 58550 30% Indian 3767 1.71% 1.05 1470 39% Pakistani 2260 1.02% 1.05 1640 73% Bangladeshi 706 0.32% 1.11 605 86% Chinese 732 0.33% 1.33 207 28% Black Caribbean 2009 0.91% 1.32 938 47% Black African 1836 0.83% 1.28 1353 74% Total 220679# 100.00%# 1.13 69142# 31% Notes: Unweighted, statistics except for female-male ratio which is weighted #This total includes persons in “mixed” and “other” categories, excluded from all analyses
  • 6. We assigned ethnicity of Sample head of household to children All Adults Female/ Children (% of total) Male ratio (% of adults) White British 196542 89.06% 1.12 58550 30% Indian 3767 1.71% 1.05 1470 39% Pakistani 2260 1.02% 1.05 1640 73% Bangladeshi 706 0.32% 1.11 605 86% Chinese 732 0.33% 1.33 207 28% Black Caribbean 2009 0.91% 1.32 938 47% Black African 1836 0.83% 1.28 1353 74% Total 220679# 100.00%# 1.13 69142# 31% Notes: Unweighted, statistics except for female-male ratio which is weighted #This total includes persons in “mixed” and “other” categories, excluded from all analyses
  • 7. Number of children per household 2.5 2 1.5 1 .5 0 White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African
  • 8. Objectives:  Discuss economic well-being of women across different ethnic groups  Discuss differences in women’s experiences and characteristics  Discuss the link between inequality and poverty  Discuss these issues for women living with dependant children to understand economic well-being of children across different ethnic groups
  • 9. Children live primarily in households with at least one woman 100 Family composition of households with dependant children 80 60 40 20 0 All White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African only men in HH only women in HH both men and women in HH
  • 10. Different income measures  Individual income: Net (of taxes) individual income that includes tax credits received as benefits ̵ Indicator of her personal resources and financial control  Household income: Net (of taxes) total household income equivalised by the OECD equivalence scale, before housing costs ― income pooling & income sharing ― Indicator of actual economic position
  • 11. Different income measures  Material deprivation (only for families with children): prevalence weighted deprivation scores ̵ Good indicator of persistent poverty ̵ Not direct measures of poverty ̵ Complements income poverty measures.
  • 12. Different methods of summarising group’s economic well-being  Mean income: Average income  Median income: Income below which 50% of the sample’s income lies ̵ Not sensitive to extreme values as the mean is  Within and between group income inequality: gini coefficient, mean logarithmic deviation ̵ If incomes within the group are not similar, then these measures summarise that information
  • 13. Different methods of summarising group’s economic well-being  Poverty rate: Proportion below the poverty threshold (yearly) which is 60% of the median of equivalised household incomes of the population for that year ̵ Direct measure of economic disadvantage for the group
  • 14. Average individual and household incomes Chinese Men Men women White British Chinese Chinese Indian High Indian White British mean Black-African Black-African individual Black-Caribbean Black-Caribbean incomes Pakistani Pakistani Bangladeshi Bangladeshi Gain from Women Women income Chinese Chinese pooling Black-Caribbean Indian Black-African White British White British Black-African Indian Black-Caribbean Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 400 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 15. Average individual and household incomes Black Men Men Caribbean White British Chinese & Black Chinese Indian African Indian White British women Black-African Black-African Black-Caribbean Black-Caribbean High Pakistani Pakistani mean Bangladeshi Bangladeshi individual Women Women incomes Chinese Chinese Black-Caribbean Indian Hardly Black-African White British gain from White British Black-African Indian Black-Caribbean income Bangladeshi Pakistani pooling Pakistani Bangladeshi 0 100 200 300 400 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 16. Average individual and household incomes White Men Men British & White British Chinese Indian Chinese Indian women Indian White British Black-African Black-African Low mean Black-Caribbean Black-Caribbean individual Pakistani Pakistani incomes Bangladeshi Bangladeshi Women Women Gain from Chinese Chinese income Black-Caribbean Indian pooling Black-African White British White British Black-African Indian Black-Caribbean Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 400 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 17. Average individual and household incomes Banglades Men Men hi and White British Chinese Pakistani Chinese Indian women Indian White British Black-African Black-African Low mean Black-Caribbean Black-Caribbean individual Pakistani Pakistani incomes Bangladeshi Bangladeshi Women Women Gain from Chinese Chinese income Black-Caribbean Indian pooling Black-African White British BUT… White British Black-African Indian Black-Caribbean Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 400 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 18. Average individual and household incomes: for men & women with dependant children BC & BA Men Men High Chinese Chinese White British White British mean Indian Indian individual Black-Caribbean Black-Caribbean incomes Black-African Black-African Pakistani Pakistani Lose from Bangladeshi Bangladeshi income Women Women pooling Black-Caribbean Chinese Chinese White British Black-African Indian White British Black-Caribbean Indian Black-African Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 400 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 19. Gains from income pooling and income sharing Comparing women’s individual and household incomes:  Black Caribbean and Black African women – high mean individual incomes – hardly gain from income pooling – Women with dependent children LOSE from pooling  Chinese women: – high average individual incomes – gain from income pooling  White British and Indian women: – low average individual incomes – gain from income pooling  Bangladeshi & Pakistani women: – low average individual incomes – gain from income pooling BUT…
  • 20. Ethnic composition of spouse/partners All White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African 0 .2 .4 .6 .8 1 Proportion of women in couples Partner of same ethnic group White British partner
  • 21. Family composition of women by ethnic groups White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African 0 20 40 60 80 100 Percent (%) single, no children single, with children one or more adults, no children one or more adults, and children
  • 22. Family composition of women with dependent children by ethnic groups White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African 0 20 40 60 80 100 Percent (%) single, with children one or more adults, and children
  • 23. Number of children per household 2.5 2 1.5 1 .5 0 White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African
  • 24. Individual incomes of men and women Men Men Net income White British Chinese Chinese Indian gap Indian White British Black-African White British Black-African 36.7 Black-Caribbean Chinese Black-Caribbean 24.9 Pakistani Pakistani Bangladeshi Indian Bangladeshi 43.8 Women Black African Women 27.0 Chinese Black Caribbean Chinese 24.9 Black-Caribbean Indian Black-African Pakistani White British 62.0 White British Bangladeshi Black-African 63.6 Indian Black-Caribbean Bangladeshi Men on an average have higher individual Pakistani Pakistani incomes than women in the same ethnic Bangladeshi 0 100 200 300 400 groups 0 100 200 300 400 Individual income (£) Household equivalent income (£)
  • 25. Women with dependent children  Men and women with children have higher individual incomes (except Bangladeshi and Pakistani women)  But lower household incomes on average than those without (except Chinese women).  Women with children are more likely to be poor than women without children.  They are more likely to be younger
  • 26. Median individual and household incomes Median Men Men incomes are White British Chinese lower than Indian White British mean incomes Chinese Indian for all groups Black-African Black-Caribbean suggesting Black-Caribbean Black-African income higher Bangladeshi Pakistani proportion Pakistani Bangladeshi with low Women Women incomes Black-Caribbean Chinese Black-African White British Chinese Indian White British Black-Caribbean Indian Black-African Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 0 100 200 300 Individual income (£) Household equivalent income (£)
  • 27. Median individual and household incomes Rank of Men Men Chinese White British Chinese women w.r.t. Indian White British median Chinese Indian individual Black-African Black-Caribbean income Black-Caribbean Black-African is lower Bangladeshi Pakistani Pakistani Bangladeshi Women Women Black-Caribbean Chinese Black-African White British Chinese Indian White British Black-Caribbean Indian Black-African Bangladeshi Pakistani Pakistani Bangladeshi 0 100 200 300 0 100 200 300 Individual income (£) Household equivalent income (£)
  • 28. Women’s individual income by ethnic groups .004 .004 White British White British White British .004 Indian Pakistani Bangladeshi .003 .003 .003 .002 .002 .002 .001 .001 .001 0 0 0 0 400 800 1200 0 400 800 1200 0 400 800 1200 £ per week £ per week £ per week .004 .004 .004 White British White British White British Chinese Black Caribbean Black African .003 .003 .003 .002 .002 .002 .001 .001 .001 0 0 0 0 400 800 1200 0 400 800 1200 0 400 800 1200 £ per week £ per week £ per week
  • 29. Percent (%) Men: White British 87.2% 10 20 30 40 50 60 70 W 0 hi te Br it is h In di an Pa ki st Ba a ni ng l All women ad es hi C Bl hi ac ne k- se C ar ib b ea Bl ac n k- Percent (%) Af ric an 10 20 30 40 50 60 70 W 0 hi te Br it is h In di an Pa ki st Ba a ni ng l ad es hi C Bl hi ac ne k- se C ar ib b ea Bl n ac k- Women with dependant children Af ric an Proportion of women employed, by ethnic group White British Men: 66.6%
  • 30. Percent (%) 10 20 30 40 50 60 70 W 0 hi te Br it is h In di an ethnic group P ak is ta B ni an gl All women ad es hi C B hi la ne c k- se C ar ib b B ea la n c k- A Percent (%) fri ca n 10 20 30 40 50 60 70 W 0 hi te Br it is h In di an P ak is ta B ni an gl ad es hi C B hi la ne c k- se C ar ib b B ea la n c k- Women with dependant children A fri ca n Proportion of 25-64 year old women employed, by
  • 31. Women’s household income by ethnic groups .004 White British White British White British Indian Pakistani Bangladeshi .003 .001 .002 .003 .004 .001 .002 .003 .004 .002 .001 0 0 0 0 400 800 1200 0 400 800 1200 0 400 800 1200 £ per week £ per week £ per week .004 .004 .004 White British White British White British Chinese Black Caribbean Black African .003 .003 .003 .002 .002 .002 .001 .001 .001 0 0 0 0 400 800 1200 0 400 800 1200 0 400 800 1200 £ per week £ per week £ per week
  • 32. Individual income inequalities within ethnic groups Mean logarithmic deviation Men and women Women living All men and living with with dependant women All women dependant children children White British 0.42 0.39 0.44 0.35 Indian 0.73 0.82 High 0.71 0.72 individual Pakistani 0.88 0.99 0.79 0.79 income Bangladeshi 0.77 0.80 0.71 inequalities 0.67 Chinese 0.78 0.87 0.88 driven by 1.05 zero Black Caribbean 0.44 0.39 0.48 0.28 incomes Black African 0.64 0.61 0.62 0.65
  • 33. Household income inequalities within ethnic groups Mean logarithmic deviation Household Men and women income All men and living with inequalities women dependant children lower than White British 0.22 0.33 individual income Indian 0.30 0.37 inequalities. Pakistani 0.26 0.33 Bangladeshi 0.18 0.30 Chinese 0.45 0.41 Black Caribbean 0.23 0.32 Black African 0.28 0.35
  • 34. Individual Income gaps for women of different ethnic groups vis-à-vis White British Men White British women Indian women Pakistani women Bangladeshi women Chinese women Black Caribbean women Black African women 0 10 20 30 40 50 60 70 Individual Income Gap (%) Women vis-a-vis all White British Men 95% confidence interval Mean gap
  • 35. Individual Income gaps for women of different ethnic groups vis-à-vis White British Men White British women Indian women Pakistani women All income gaps are Bangladeshi women negative and significantly Chinese women different from zero Black Caribbean women Black African women 0 10 20 30 40 50 60 70 Individual Income Gap (%) Women vis-a-vis all White British Men 95% confidence interval Mean gap
  • 36. Individual Income gaps for women of different ethnic groups vis-à-vis White British Men White British women Indian women Pakistani women Pay gaps are 16-17% for Bangladeshi women women with full time Chinese women employment Source: Longhi Black Caribbean women and Platt 2008 Black African women 0 10 20 30 40 50 60 70 Individual Income Gap (%) Women vis-a-vis all White British Men 95% confidence interval Mean gap
  • 37. Income gaps and pay gaps for women of different ethnic groups vis-à-vis White British Men Rank by pay gaps# Rank by income gaps Chinese 1 1 Black Caribbean 2 1 Indian 3 5 White British 4 4 Bangladeshi 5 6 Black African 6 3 Pakistani 7 7 #Source: Longhi and Platt 2008 using the Labour Force Survey
  • 38. Household Income and % Poor % poor 0 10 20 30 40 50 Black African W Black Caribbean W Chinese W Bangladeshi W Pakistani W Indian W White British W White British M 0 100 200 300 Mean income (£ pw) Household Income % poor
  • 39. Household Income and % Poor % poor 0 10 20 30 40 50 Black African W Black Caribbean W Chinese W Bangladeshi W Pakistani W Indian W White British W White British M 0 100 200 300 Mean income (£ pw) Household Income % poor
  • 40. Household Income and % Poor % poor 0 10 20 30 40 50 Black African W Black Caribbean W Chinese W Bangladeshi W Pakistani W Indian W White British W White British M 0 100 200 300 Mean income (£ pw) Household Income % poor
  • 41. Poverty Rates All adults Women Men Women Men Children With dependant Children White British 15.5 16.7 14.1 17.4 13.3 19.4 Indian 21.9 23.0 20.8 26.0 24.3 27.4 Pakistani 45.9 46.0 45.7 49.8 49.3 54.6 Bangladeshi 50.1 51.9 48.2 57.7 54.6 64.2 Chinese 20.5 20.6 20.5 24.7 20.6 31.3 Black-Caribbean 22.2 23.5 20.7 24.6 23.0 25.6 Black-African 23.9 22.7 25.1 28.8 27.3 34.7 Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8 Child poverty rates are higher than that of women or men in the same ethnic group
  • 42. Poverty Rates All adults Women Men Women Men Children With dependant Children White British 15.5 16.7 14.1 17.4 13.3 19.4 Indian 21.9 23.0 20.8 26.0 24.3 27.4 Pakistani 45.9 46.0 45.7 49.8 49.3 54.6 Bangladeshi 50.1 51.9 48.2 57.7 54.6 64.2 Chinese 20.5 20.6 20.5 24.7 20.6 31.3 Black-Caribbean 22.2 23.5 20.7 24.6 23.0 25.6 Black-African 23.9 22.7 25.1 28.8 27.3 34.7 Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8
  • 43. Poverty Rates All adults Women Men Women Men Children With dependant Children White British 15.5 16.7 14.1 17.4 13.3 19.4 Indian 21.9 23.0 20.8 26.0 24.3 27.4 Pakistani 45.9 46.0 45.7 49.8 49.3 54.6 Bangladeshi 50.1 51.9 48.2 57.7 54.6 64.2 Chinese 20.5 20.6 20.5 24.7 20.6 31.3 Black-Caribbean 22.2 23.5 20.7 24.6 23.0 25.6 Black-African 23.9 22.7 < 25.1 28.8 27.3 34.7 Source: Family Resources Survey and Households Below Average Income 2003/4-2007/8 Women’s poverty rates are almost always higher than that of men the same ethnic group
  • 44. Individual income composition Women White British Indian Pakistani Bangladeshi Chinese Black-Caribbean Black-African 0 20 40 60 80 100 Percent share Earnings Self-employment Pension income Benefits Tax credits as benefits Other income
  • 45. Age composition of all women by ethnic groups Overall White British women in all non-white Indian groups are Pakistani more likely to Bangladeshi be younger. More than Chinese 75% of EM Black-Caribbean women are 54 years or less Black-African while only 59% of white 0 20 40 60 80 100 women are 55 Percent (%) or less 16-24 25-34 35-44 45-54 55-64 65-74 75+
  • 46. Age composition of women with dependent children by ethnic groups As expected White British women with dependent Indian children are Pakistani relatively younger: Bangladeshi around 80% Chinese are 44 years or less Black-Caribbean Black-African 0 20 40 60 80 100 Percent (%) 16-24 25-34 35-44 45-54 55-64 65-74 75+
  • 47. Age-income profiles  Very little variation in income gaps between ethnic groups for different age groups  Except at very young or very old ages Individual Income (£ per week) Equivalent Household Income (£ per week) 100 150 200 250 300 350 100 150 200 250 300 350 50 50 16-24 25-34 35-44 45-54 55-64 65-74 75+ 16-24 25-34 35-44 45-54 55-64 65-74 75+ age in years age in years White British Pakistani Bangladeshi
  • 48. Women’s income composition Individual Income  Earnings – important source for all, 50-60% – except for Bangladeshi & Pakistani women, 30-40% & 25-30% for women with dependent children  Non-pension benefits and tax credits – Important for Bangladeshi & Pakistani women, 45-50% – More so for Bangladeshi and Pakistani women with dependant children, 10% higher – Relatively important for Caribbean and Black African women, 20-25%
  • 49. Women’s income composition Individual Income  Pension – Important for White British women, 20%  Other income and self-employment income – Important source for Chinese women Household Income  Labour income more important, and  Non-pension benefits & tax credits less important
  • 50. Contribution of different income sources to income inequality  Labour income – most important contributing factor, more so for men – Self-employment disproportionately higher – More so for women with dependent children, less so for men with dependent children  Non-pension benefit income & tax credits – reduces income inequality a little, 2%
  • 51. Material deprivation scores  21 questions of the following type, where 11 are about adults or family circumstances and 10 only about children  Do you [and your family/and your partner] have a holiday away from home for at least one week a year, whilst not staying with relatives at their home? ― We/I have this ― We/I would like to have this but cannot afford this at the moment ― We/I do not want / need this at the moment ― [Does not apply]  Total deprivation score is a prevalence weighted sum of individual item scores (1 if cannot afford, 0 otherwise). Note only available for families with children.
  • 52. Material deprivation items: 11 adult items Do you  have a holiday away from home for at least one week a year, whilst not staying with relatives at their home?  have friends or family around for a drink or meal at least once a month?  have two pairs of all weather shoes for [Name of all adults in Benefitunit]?  have enough money to keep your home in a decent state of decoration?  have household contents insurance?  make regular savings of £10 a month or more for rainy days or retirement?  replace any worn out furniture?  replace or repair major electrical goods such as a refrigerator or a washing machine, when broken?  have a small amount of money to spend each week on yourself (not on your family)?  have a hobby or leisure activity?  in winter, are you able to keep this accommodation warm enough?
  • 53. Material deprivation items: 10 children items Does your child have do your children have  a family holiday away from home for at least one week a year?  leisure equipment such as sports equipment or a bicycle?  celebrations on special occasions such as birthdays, Christmas or other religious festivals?  an outdoor space or facilities nearby where they can play safely? Does your child/do your children  go swimming at least once a month?  do a hobby or leisure activity?  have friends around for tea or a snack once a fortnight?  go to toddler group / nursery / playgroup at least once a week.?  go on school trips?  Are there enough bedrooms for every child of 10 or over of a different sex to have their own bedroom?
  • 54. Distribution of deprivation scores of women with children by ethnic groups White British Indian Pakistani .6 Higher .4 proportion with low .2 deprivation 0 Bangladeshi Chinese Black Caribbean scores: .6 White .4 British, Indian and .2 Chinese 0 women 0 50 100 Black African Total .6 .4 .2 0 0 50 100 0 50 100 Deprivation score
  • 55. Distribution of deprivation scores of women with children by ethnic groups White British Indian Pakistani .6 Higher .4 proportion with high .2 deprivation 0 Bangladeshi Chinese Black Caribbean scores: .6 Bangladeshi, .4 Black African, .2 Pakistani 0 and Black 0 50 100 Black African Total Caribbean .6 women. Highest deprivation scores for .4 Bangladeshi and Black African .2 women 0 0 50 100 0 50 100 Deprivation score
  • 56. Distribution of deprivation scores of children by ethnic groups White British Indian Pakistani Same picture .5 as for women. Bangladeshi 0 Bangladeshi Chinese Black Caribbean and Black .5 African children have highest 0 deprivation Black African Total 0 50 100 scores Nearly half of Bangladeshi .5 children have incomes < 70% of Median AND deprivation scores >25 0 0 50 100 0 50 100 Deprivation score Compared to 16-17% of all children
  • 57. Distribution of child poverty indicator by ethnic groups Child poverty indicator: Family deprivation score>25 & household income <70% of median Children Women Men Living with children Bangladeshi 48.8% 40.4% 39.2% Pakistani 39.1% 30.9% 29.5% Black African 33.5% 29.3% 20.2% 16-17% of all Black Caribbean 21.0% 20.4% 15.2% children White British 14.5% 12.9% 7.1% fall into Indian 13.4% 11.9% 10.1% this category Chinese 8.3% 10.1% 6.5% (DWP 2009)
  • 58. Deprivation scores by poverty status Not poor Poor Black African Black African Black Caribbean Black Caribbean Chinese Chinese Bangladeshi Bangladeshi Pakistani Pakistani Indian Indian White British White British 0 10 20 30 40 0 10 20 30 40 Deprivation Score Deprivation Score Men Women Men Women
  • 59. Link between income inequality of women and poverty How would poverty rates change if group income inequalities were eliminated? Simulate women’s individual and household incomes to eliminate within and between group income inequalities  Assign to all women the mean income of women in her ethnic group  Assign age-adjusted mean income of White British women to all women  Do not change men’s incomes  Re-calculate household incomes and the new poverty lines and poverty status
  • 60. Women’s new simulated poverty rates 100 80 60 40 20 0 All Indian Bangladeshi Black Caribbean White British Pakistani Chinese Black African Ethnic group New poverty rates using new poverty line after equialisation of Within group household income Within group individual income Between group household income Between group individual income Original Poverty Rate
  • 61. Men’s new simulated poverty rates 100 80 60 40 20 0 All Indian Bangladeshi Black Caribbean White British Pakistani Chinese Black African Ethnic group New poverty rates using new poverty line after equialisation of Within group household income Within group individual income Between group household income Between group individual income Original Poverty Rate
  • 62. Eliminating Eliminating Eliminating Eliminating within group within group between group between group household individual household individual income income income income inequality inequality inequality inequality All men and women Move out of poverty 14% 10% 14% 10% Move into poverty 1% 4% 1% 5% Remain in poverty 2% 6% 2% 7% Remain out of poverty 83% 80% 82% 79% Women Move out of poverty 17% 13% 18% 12% Move into poverty 0% 5% 0% 7% Remain in poverty 0% 5% 0% 6% Remain out of poverty 82% 77% 82% 75% Men Move out of poverty 11% 8% 11% 8% Move into poverty 2% 2% 2% 2% Remain in poverty 5% 8% 4% 7% Remain out of poverty 83% 82% 82% 83%
  • 63. Eliminating Eliminating Eliminating Eliminating within group within group between group between group household individual household individual income income income income inequality inequality inequality inequality All men and women with dependant children Move out of poverty 17% 7% 18% 10% Move into poverty 1% 10% 0% 6% Remain in poverty 1% 10% 0% 8% Remain out of poverty 82% 72% 82% 76% Women with dependant children Move out of poverty 19% 8% 19% 10% Move into poverty 0% 14% 0% 8% Remain in poverty 1% 12% 0% 9% Remain out of poverty 80% 66% 81% 72% Children Move out of poverty 19% 8% 20% 10% Move into poverty 1% 11% 0% 7% Remain in poverty 1% 13% 0% 10% Remain out of poverty 79% 69% 79% 72%
  • 64. To conclude  Diversity of women’s income within and between ethnic groups  But a substantial proportion of women are poor across different ethnic groups to varying degree  Women’s poverty is very closely related to poverty of children as most children live with at least one woman guardian
  • 65. To conclude  Poverty is determined not just by women’s wages, or even their total income  Who they live with matters: income pooling (sharing rule) and family size  Different patterns of women’s own income and income pooling across groups  We need to measure economic well-being directly
  • 66. To conclude  Bangladeshi & Pakistani women: low own income, low income of spouses  Black Caribbean and African women: high own income, relatively lower income of spouses/partner, single mothers  Indian and Chinese women: gain from income pooling on average, but high within group income inequality