2. UNDERSTANDING ETHNICITY PAY GAP HISTORICAL AND STRUCTURAL CONTEXT
The ethnicity pay gap is a longstanding issue rooted in structural, institutional, and societal inequities. It reflects historical patterns of exclusion that continue to shape access to opportunity, workforce participation, and the value placed on different types of work. These include: Racialised labour market segmentation. Unequal access to education, networks, and financial capital. Discriminatory recruitment, pay-setting, and performance management. Cultural bias and proximity-based privilege in decision-making. Historically, racialised labour market segmentation has steered ethnic minority groups into lower-paid, less secure, or less visible roles, often limiting upward mobility. This has been compounded by unequal access to high-quality education, influential professional networks, and the financial capital required to navigate and advance in many careers. Cultural stereotypes and role assumptions continue to influence who is seen as “suitable” for certain jobs, reinforcing occupational clustering and limiting diversity in senior roles. Informal hiring, geographic disparities in opportunity, and narrow definitions of “fit” further entrench these patterns. THE SYSTEMIC NATURE OF THE PAY GAP Organisational systems, from recruitment pipelines to leadership selection, are often designed around a default majority profile, inadvertently locking out those from racially minoritised backgrounds. This leads to: Proximity bias, where those physically or culturally “closer” to leadership receive more opportunities. Gatekeeping by informal networks, which exclude diverse talent from development opportunities. A lack of transparent criteria in hiring and promotions, enabling bias to flourish unchecked.
“Transparency without action can breed mistrust.”
“Fair pathways into leadership don’t just transform organisations they transform student ambition and belonging.” Dr Jummy Okoya
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