10 . Reduced inequality within and among countries
Employment rates by ethnic groups vary across the WMCA with the Indian and White groups displaying the highest rates at 77.5% and 76.5% respectively, down to the Pakistani/Bangladeshi group with an employment rate at 51.4% in 2019. In part this is a function of lower employment rates for women in the later group.
Compared to 2018, the employment rate has increased by 6.1pp for the Mixed ethnic group and Indian ethnic group in the WMCA, while for the UK there was an increase of 2.4pp and a decrease of 0.3pp respectively. However, in the WMCA the Other ethnic group employment rate has decreased by 3.9pp compared to an increase of 1.8pp across the UK and a 2.2pp decrease for the Pakistani/ Bangladeshi group while the UK decreased by 1.0pp.
The healthy life expectancy gap within the WM 7 Met. area is significant for both men and women. The healthy inequality gap between the most and least deprived areas across the WM 7 Met. geography has increased among males to 8.8 years (+2.6years since 2017) and for females to 8.5 years (+1.2 years) in 2018.
Overall deprivation is high in the WMCA; the proportion of LSOA’s within the top 20% and top 10% most deprived areas in England stands at 34.5% and 19.2% respectively whilst compared to 33.4% and 18.9% in 2015.
The healthy life expectancy gap within the WM 7 Met. area is significant for both men and women. The healthy inequality gap between the most and least deprived areas across the WM 7 Met. geography has increased among males to 8.8 years (+2.6years since 2017) and for females to 8.5 years (+1.2 years) in 2018.
Overall deprivation is high in the WMCA; the proportion of LSOA’s within the top 20% and top 10% most deprived areas in England stands at 34.5% and 19.2% respectively whilst compared to 33.4% and 18.9% in 2015.
| WMCA 2018 | UK 2018 | WMCA 2019 | UK 2019 | |||
| Number | Percent | Percent | Number | Percent | Percent | |
| White | 1,449,500 | 75.10% | 76.70% | 1,441,500 | 76.50% | 77.30% |
| Mixed Ethnic Group | 18,900 | 56.60% | 67.00% | 25,200 | 62.70% | 69.40% |
| Indians | 109,200 | 71.40% | 76.00% | 132,600 | 77.50% | 75.70% |
| Pakistani/Bangladeshi | 103,800 | 53.70% | 57.10% | 111,300 | 51.40% | 56.10% |
| Black or black British | 112,300 | 63.60% | 66.90% | 103,000 | 61.90% | 68.80% |
| Other Ethnic Group | 50,200 | 58.70% | 62.00% | 56,600 | 54.80% | 63.80% |
Income inequality Research Case Study
As noted in SDG 5 research has been carried out through an analysis of HMRC income data looking at inequality. Early findings show that:
- 72% of people have a total income below the regional average. So 7 out of 10 are below the average of £23,200 (national average £24,400)
- The region is the 5th most unequal region measured by the GINI index
- Poorer more deprived areas have less inequality (strikingly so) and richer areas are more unequal, skewed by very high outliers
- People get richer in their middle age and the older they get the more unequal the incomes become reaching maximum income inequality in55-64 age range. But this divergence is set early in life and continues to diverge, suggesting that income inequality set up by inheritance or differences in backgrounds early on and compounded later on by unequal opportunities e.g. in education, career etc. Middle age inequality contributes most to the overall age element of income inequality
- Employment is the main source of income for people cross all income levels, followed by ‘Other’ source of income for the poorest, ‘Partnership’ for the richest and ‘Occupational pension’ for the rest of people in the region. The older you get the more important occupational pensions become.
- The sector that people work in is the largest of the four income dimensions (source, gender, age and industry) in terms of the contribution to inequality. With significant inequality within the sectors also occurring. High employment sectors (such as retail) contribute most to inequality but some sectors have significant within sector disparity often ones dominated by sole traders and entrepreneurs
- These findings point to the importance of financial security and management skills and the ability for people to access other sources of income, entrepreneurship and opportunities to inequality; and also how we prepare young people for the future and change pathways which are established early in life.
- Men tend to be wealthier than women. There are almost equal shares of men and women in bottom percentiles with women numbering slightly more than men. The number of men increased from 39% in second percentile and grew steadily reaching 82% in last tenth percentile, meaning that 8out of 10 individuals among the richest people in West Midlands are males.
- People tend to get richer in their middle ages. Age ranges represented almost ideally equally in bottom percentiles with middle ages of 45-54y.o dominating among tops with smaller shares of people younger 35 y.o and older 65 y.o
- Employment is the main source of income for people across all percentiles followed by ‘Other’ source of income for the poorest, ‘Partnership’ for the richest and ‘Occupational pension’ for the rest of people in the region.