Neighbourhood effects and pension protection amongst ethnic minorities in England and Wales

Abstract

Ethnic minorities are concentrated in particular geographical areas in England and Wales. Neighbourhood effects, such as the concentration of individuals from particular ethnic groups and levels of local deprivation, can impact upon the labour market performance of ethnic minorities and thus may affect individuals’ pension protection. This paper examines the neighbourhood effect on pension protection for ethnic minorities in England and Wales using the wave 1 (January 2009 - March 2011) dataset of the Understanding Society linked with a range of neighbourhood characteristics from the 2011 UK Census. Results from multilevel logistic models highlight that in addition to the effect of individual characteristics on patterns of pension protection, the level of concentration of own-ethnic-group individuals is significantly negatively correlated with a range of key indicators associated with pension protection such as being in paid employment, being an employee, and working for an employer who offers a pension scheme. However, the concentration of one’s own ethnic group has no significant effect on the likelihood of being a member of an employer’s pension scheme after controlling for other factors. Living in a deprived neighbourhood is negatively correlated with one’s likelihood to be in paid employment or being self-employed. Furthermore, individuals are less likely to be members of an employer’s pension scheme if they live in highly deprived neighbourhoods

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Identifiers

ORCID for Athina Vlachantoni: orcid.org/0000-0003-1539-3057

ORCID for Maria Evandrou: orcid.org/0000-0002-2115-9358

ORCID for Jane Falkingham: orcid.org/0000-0002-7135-5875

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