The impact of language ability on employment and earnings of Britain's ethnic communities

The Fourth National Survey of Ethnic Minorities contains useful information about the language ability of Britain's non-whites as well as a wealth of comparative information for whites. The paper attempts to establish how muc h of the lower unemployment and higher earnings enjoyed by whites is the re sult of a comparative advantage in language. Language is shown to contribut e to a part of the non-white disadvantage, but after language effects are r emoved non-whites males still have higher unemployment rates and lower earn ings. Language disadvantage among non-white females leads to higher inactiv ity rates rather than more unemployment.