The purpose of this paper is to analyse income differences betweeen Ca
tholic and Protestant families in Northern Ireland (NI) using Family E
xpenditure Survey micro-data. The paper's first conclusion is that the
re is much greater inequality within the Catholic and Protestant commu
nities than there is between them. It's second conclusion, based upon
econometric analysis of data for full-time employees, is that the lowe
r mean income of Catholics, relative to Protestants, could be entirely
explained in terms of different rates of reward attached to a given s
et of labour market characteristics.