Second-generation ethnic minorities are achieving great success in education, but this does not translate into equal success in the labour market

By Nuffield Foundation

Today’s second-generation ethnic minority adults, who were born and brought up in the UK, did much better in the education system than the white majority despite much less advantaged economic backgrounds. This was true, though differentially so, for all the main minority groups. It contrasts with the experience of most ethnic minorities in other European countries.

This educational success does not, however, translate fully into success in the labour market. After leaving education, second-generation ethnic minority adults are less likely to be employed, and some ethnic groups are less likely to reach managerial/professional occupations, than the white majority.

A new report published as part of the IFS Deaton Review of Inequalities, funded by the Nuffield Foundation, illustrates the complexities involved in understanding ethnic inequalities. It is not the case that the labour market deficits people from ethnic minorities face are simply explained by their less advantaged family backgrounds. Those same backgrounds do not hold them back in the education system. Nor do we have a full understanding of why they are so successful educationally.

The research uses linked Census data covering a 40-year period to track outcomes across generations within families. It focuses on second-generation British minority ethnic groups – those whose parents were born abroad and moved to the UK as adults – and on the British Indian, Pakistani, Bangladeshi and Black Caribbean ethnic groups who are represented in sufficient numbers for analysis and who are sufficiently long-standing in the UK that the second generations can be tracked well into adulthood. These comprise the majority of the UK’s second-generation adult ethnic minorities.

We find a picture that is varied and complex but one that policymakers must grasp if they are to develop policies aimed at tackling inequalities. Key findings include:

Second-generation ethnic minority adults are much more likely to come from more disadvantaged social class origins, as measured by whether their parents were in professional or managerial occupations, compared with the white majority. Only 16% of Indian, 7% of Pakistani, 5% of Bangladeshi and 14% of Black Caribbean second-generation ethnic minorities who had reached adulthood by 2011 came from such advantaged origins, compared with 29% of White British people.

Despite poorer family backgrounds on average, second-generation ethnic minorities are substantially more likely to achieve high educational qualifications than the white majority. For example, over 50% of British Indians and 35% of British Pakistanis and Bangladeshis have tertiary (degree-level or equivalent) qualifications, compared with 26% of the White majority. This may, at least in part, be because their ethnic minority parents are not comparable to white British parents of the same occupational class.

The ‘occupational downgrading’ that immigrants often experience when moving to another country implies that those who arrive with significant skills or cultural/social resources may nevertheless end up in similar occupations to White British people without those resources. Nevertheless, the ability of the UK’s second-generation ethnic minorities to succeed in education despite more disadvantaged social origins is distinctive by comparison with other European countries.

And yet, when we look at the labour market, the position of ethnic minorities does not match what we might expect given the typical rewards associated with education. British Pakistani, Bangladeshi and Black Caribbean second-generation men and women are all more likely to be highly educated than their white majority counterparts. Yet they are less likely to be employed in each case. Their chances of attaining professional or managerial occupations are similar to those of their White British counterparts, but lag behind what we might expect given their educational success.

The experiences of people from ethnic minorities who have grown up in the UK are different and complex. We should celebrate their remarkable success in education, but ask hard questions about why this does not translate into equal success in the world of work. Attempts to oversimplify by putting poorer labour market performance down solely to less advantaged backgrounds on the one hand, or discrimination on the other, fail to recognise that both are relevant. To devise effective strategies for addressing ethnic inequalities in the UK, we need to not only improve opportunities for social mobility more generally, but also ensure that hard-won qualifications can be translated into success in work. Lucinda Platt, Professor at the LSE, a member of the panel overseeing the IFS Deaton Review of Inequalities, and an author of the report.
Whilst a large proportion of people from second-generation minority ethnic backgrounds have achieved high-level academic qualifications, the fact that this has not translated directly into earnings outcomes raises important questions about how the education system and the labour market relate both to each other and to people’s family background and ethnicity. Policies designed to improve social mobility and address discrimination should be informed by understanding of how class, ethnicity and gender intersect throughout people’s lives to affect labour market success. Mark Franks, Director of Welfare, Nuffield Foundation

Related project


Explore our projects

A portrait of a teenager wearing casual clothing on an overcast summer day in Whitley Bay, Northeastern England. They are standing and looking concerned as they use their smartphone.
In progress

Welfare | 2026 - 2028

The digital lives of care-experienced children

View project
A simple wall sign outside the British Treasury building at 1 Horse Guards Road, just off Whitehall, London.
In progress

Welfare | 2026 - 2030

IFS Green Budget 2026 – 2029

View project
Over-the-shoulder shot of a female secondary school teacher having a one-to-one conversation with a male teenage student. They are both sitting down and she is maintaining eye contact as she is talking. The teacher is smiling and sharing a positive interaction with the student.
In progress

Education | 2026 - 2028

The impacts of Relational and Restorative Practice in school

View project
Young girl smiling and reading book on green sofa
In progress

Education | 2026 - 2028

Love to Read Phase 2: A large-scale evaluation

View project
In progress

Education | 2026 - 2027

The effects of permanent school closures on pupils’ outcomes

View project
Young well dressed businesswoman working on a computer at the office

Welfare | 2026 - 2029

Pain-at-Work Toolkit for employees with chronic pain (definitive trial) 

View project
In progress

Education | 2026 - 2028

The long-term impact of student loans in further education

View project
Young woman using a digital printing machine on an apprenticeship
In progress

Education | 2026 - 2027

Apprenticeship Pathways

View project

Welfare | 2026 - 2028

Examining gender pension gaps: trajectories over time in the UK

View project
Early years professionals playing with children
In progress

Education | 2026 - 2028

Noise in early years settings for children from under-privileged backgrounds

View project
Female Student Standing Outside College Building
In progress

Education | 2026 - 2027

How do students with SEND fare in the transition to post-16 education?

View project
Parents with baby
In progress

Education | 2026 - 2028

Your Baby and You: Developing the home learning environment for babies

View project
A simple wall sign outside the British Treasury building at 1 Horse Guards Road, just off Whitehall, London.
In progress

Welfare | 2026 - 2030

IFS Green Budget 2026 – 2029

View project
A portrait of a teenager wearing casual clothing on an overcast summer day in Whitley Bay, Northeastern England. They are standing and looking concerned as they use their smartphone.
In progress

Welfare | 2026 - 2028

The digital lives of care-experienced children

View project
Young well dressed businesswoman working on a computer at the office

Welfare | 2026 - 2029

Pain-at-Work Toolkit for employees with chronic pain (definitive trial) 

View project
In progress

Education | 2026 - 2027

The effects of permanent school closures on pupils’ outcomes

View project
Female Student Standing Outside College Building
In progress

Education | 2026 - 2027

How do students with SEND fare in the transition to post-16 education?

View project
Young woman using a digital printing machine on an apprenticeship
In progress

Education | 2026 - 2027

Apprenticeship Pathways

View project
Young girl smiling and reading book on green sofa
In progress

Education | 2026 - 2028

Love to Read Phase 2: A large-scale evaluation

View project
Pioneering study reveals teaching techniques which boost exam performance: a teacher sits on a desk among her secondary school pupils, all looking at the board
In progress

Education | 2026 - 2027

A study of multi-grade teaching in English primary schools

View project
Over-the-shoulder shot of a female secondary school teacher having a one-to-one conversation with a male teenage student. They are both sitting down and she is maintaining eye contact as she is talking. The teacher is smiling and sharing a positive interaction with the student.
In progress

Education | 2026 - 2028

The impacts of Relational and Restorative Practice in school

View project
Parents with baby
In progress

Education | 2026 - 2028

Your Baby and You: Developing the home learning environment for babies

View project
In progress

Education | 2026 - 2028

The long-term impact of student loans in further education

View project

Welfare | 2025 - 2026

2026 Scottish Parliament and Senedd election analysis

View project
A simple wall sign outside the British Treasury building at 1 Horse Guards Road, just off Whitehall, London.
In progress

Welfare | 2026 - 2030

IFS Green Budget 2026 – 2029

View project
A portrait of a teenager wearing casual clothing on an overcast summer day in Whitley Bay, Northeastern England. They are standing and looking concerned as they use their smartphone.
In progress

Welfare | 2026 - 2028

The digital lives of care-experienced children

View project
In progress

Education | 2026 - 2027

The effects of permanent school closures on pupils’ outcomes

View project
Female Student Standing Outside College Building
In progress

Education | 2026 - 2027

How do students with SEND fare in the transition to post-16 education?

View project
Young woman using a digital printing machine on an apprenticeship
In progress

Education | 2026 - 2027

Apprenticeship Pathways

View project
Young girl smiling and reading book on green sofa
In progress

Education | 2026 - 2028

Love to Read Phase 2: A large-scale evaluation

View project
Pioneering study reveals teaching techniques which boost exam performance: a teacher sits on a desk among her secondary school pupils, all looking at the board
In progress

Education | 2026 - 2027

A study of multi-grade teaching in English primary schools

View project
Over-the-shoulder shot of a female secondary school teacher having a one-to-one conversation with a male teenage student. They are both sitting down and she is maintaining eye contact as she is talking. The teacher is smiling and sharing a positive interaction with the student.
In progress

Education | 2026 - 2028

The impacts of Relational and Restorative Practice in school

View project
Parents with baby
In progress

Education | 2026 - 2028

Your Baby and You: Developing the home learning environment for babies

View project
In progress

Education | 2026 - 2028

The long-term impact of student loans in further education

View project
In progress

Education | 2026 - 2027

Trialling an assessment protocol for LLM-powered careers advice 

View project
Teaching assistant plays with little boy at nursery
In progress

Education | 2025 - 2026

Room to Grow: School-based Nursery Places and the Disadvantage Gap

View project
Reported

Education | 2025 - 2025

Exploring Multi Academy Trust approaches to Artificial Intelligence

View project
Pre-school students sitting in an art classroom being taught by a teacher. The classroom is colourful and the children are sat at a big table.
Reported

Education | 2024 - 2026

A comparative analysis of EY workforce policy in the four UK nations

View project
Black woman typing on laptop in living room
Reported

Welfare | 2024 - 2025

Enhancing, localising and democratising tax-benefit policy analysis

View project
Young girl using an iPad at home
Reported

Education | 2024 - 2024

Early years digital media literacy review

View project
Secondary school music teacher smiles at students working together at a keyboard.
Reported

Education | 2024 - 2026

Teacher recruitment & retention challenges in England

View project
A middle-aged man sat at home is looking at this phone while sorting pension paperwork.
Reported

Welfare | 2023 - 2025

Collective defined contribution pensions with investment choice

View project
Sixth form student smiling in a classroom while a teacher helps a classmate in the row behind him
Reported

Education | 2023 - 2025

The Extended Project Qualification: An Opportunity for All?

View project
Teenage sixth form students walking into college
Reported

Education | 2023 - 2025

Revisiting the raising of the participation age to 18 in England

View project
Two little boys and a little girl, all wearing primary school uniform, work together to solve a puzzle in their classroom.
Reported

Education | 2023 - 2025

What has ‘Free School Meals’ measured and what are the implications?

View project
Elderly man drinking tea at home with professional carer
Reported

Welfare | 2023 - 2024

Evidencing the outsourcing of social care provision in England

View project
Early years professionals playing with children
Reported

Education | 2022 - 2024

Understanding the take-up of early education entitlements

View project
Older woman using a tablet to make a video call
Reported

Welfare | 2023 - 2025

Remote osteoarthritis peer-mentorship for socioeconomically underserved people

View project
Search projects

We improve people’s lives by funding research that informs social policy, primarily in Education, Welfare and Justice. We also fund student programmes that give young people skills and confidence in science and research.

We offer our grant-holders the freedom to frame questions and enable new thinking. Our research must stand up to rigorous academic scrutiny, but we understand that to be successful in effecting change, it also needs to be relevant to people’s experience.

Profile