Modelling the labour market of minority ethnic groups

Abstract

This paper investigates the effects, in terms of labour and macroeconomic indicators, of closing the gap between the ethnic minority employment rate and the overall population rate using a computable general equilibrium modelling framework. The labour market has been integrated by indicators related to ethnicity, employment status and occupational class. The policy test has been designed for the UK. According to the results, the policy actions aimed to remove the barriers that contribute to the unemployment of the minority ethnic groups improve not only the employment and occupational status of these groups, but the effects are also positive in terms of aggregate employment, GDP, trade and welfare.