Ethno-religious minorities and labour market integration: generational advancement or decline?

Abstract

This paper examines the generational progress of ethnic minorities in Britain by analysing four labour market outcomes: economic inactivity, unemployment, access to salaried jobs and self-employment. An important contribution of this paper is the possibility to examine the impact of a range of cultural and social resources on employment outcomes, namely language fluency, co-ethnic spouse, co-ethnic employer, bridging and bonding social capital. Controlling for ethnic and religious identities, individual, social and human capital characteristics, it finds clear advantages of language proficiency in obtaining employment and salaried jobs. However, the second generation shows little advancement in all the outcomes examined and a particularly strong religious penalty is found among Muslim women. It concludes that persistent ethno-religious penalty experienced by the second generation poses a serious policy challenge and does little to strengthen our economy or in building a cohesive society.

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