ADR Wales’ Major Societal Challenges research programme delivers high-quality research on critical issues affecting Wales. In their latest project, the team proposes linking HMRC employed income data to existing datasets within SAIL Databank to investigate disparities in pay across protected characteristics. The initial focus will be on examining pay disparities across ethnic groups in Wales, with the aim of generating evidence on the ethnicity pay gap. This will inform evaluations of progress towards achieving the national wellbeing goal: ‘A More Equal Wales’.

Working closely with ADR Wales colleagues in Welsh Government, the team aims to inform evidence-based policies on pay equality and support the development of long-term impact indicators for policy evaluation. This project will examine overall income – a broader measure than typical pay gap analyses, which often focus on average hourly or annual pay. This differs from equal pay, which refers to the legal requirement that men and women receive the same pay for work of equal value. Disparities in overall income reflect deeper, systemic inequalities.

In addition to exploring differences in income, the research will investigate intersectional disadvantage, examining how multiple demographic factors interact to compound inequities in pay.

This is the first time HMRC employed income data will be used for data linkage research in SAIL Databank. As such, the team will also assess its broader utility as a research resource.

The findings are intended to inform the evaluation of Welsh Government equality policies around fair pay across protected groups and provide a baseline to support the government’s ongoing commitment to report on and eliminate pay gaps in Wales.