wage differentials4

• In a diverse economy like the UK, what is notable about wage differentials between ethnic groups?

  They are absolutely huge
• According to the text, what is one of the main economic reasons for wage differentials between ethnic groups?

  Poor education and skills
• What impact does poor education, skills, and qualifications have on a minority group's wages?

  It leads to very low wages
• How does poor education, skills, and qualifications affect a minority group's employment prospects?

  Their employment prospects will be low
• How does poor education, skills, and qualifications affect a minority group's earning potential?

  Their earning potential will be very low
• How does the text relate education standards and skills to wages across different groups in society?

  Better education leads to higher wages
• According to the text, what is a factor linked to education level that can affect wage differentials?

  Language proficiency
• In the context of the UK economy, how does a lack of English proficiency affect minority groups?

  Their productivity will be low
• How does a lack of English proficiency affect minority groups' employability?

  Their employability will be low
• What effect does a lack of English proficiency have on a minority group's access to high-paying sectors?

  Access will be very low
• Which sectors are difficult to access without English proficiency according to the text?

  Banking, financial, legal services
• According to the text, if minority groups cannot access sectors where wages are high, what happens to their wages?

  It keeps wages very low
• According to the text, what is the impact of minority groups working in low-paid professions?

  That's going to keep wages low
• According to the text, if minority groups end up working in the same kind of manual jobs, how will they be paid?

  They're always going to be paid quite low
• How can living in poor areas with low labor demand affect minority groups' wages?

  It can keep wages low
• What does the text say that living in poor areas with low demand for labor limits?

  Wage Rises and earning potential
• According to the text, what can be a major factor behind wage variances related to migration?

  Reluctance of minority groups to migrate
• According to the text, what can the reluctance of minority groups to migrate come back to?

  Cultural factors
• Why might some ethnic groups choose to stay close to family even with wage disparities?

  It's in their culture
• According to the text, why might some ethnic groups be forced to accept lower wages?

  Due to cultural expectations to stay nearby
• How does cultural reluctance to migrate impact wage variances compared to groups more flexible with location?

  It keeps the variance high
• According to the text, what illegal practice can still happen that affects wage differentials?

  Discrimination
• According to the text, what is it illegal to discriminate on?

  Race or ethnicity
• According to the text, how might firms discriminate in terms of wages?

  Pay workers from a given ethnic background less
• What is one way firms may discriminate against a certain race or background, according to the text?

  Reject giving a job
• According to the text, how can discrimination impact wage variances between ethnic groups?

  It's a big reason why there might be wage variances
• What is generally observed regarding wage disparities between ethnic groups in the UK?

  Large wage differentials
• What does MRP stand for, and how does it relate to wages according to the text?

  Marginal Revenue Product; low MRP leads to low wages
• How can the reasons for wage differentials be 'flipped' to explain higher wages for certain minority groups?

  Better education, language skills, and location