JRF programme paper:

Poverty and ethnicity

Poverty, ethnicity and education

Nii Djan Tackey, Helen Barnes and Priya Khambhaita

May 2011

This paper:
• summarises the evidence from literature, about the employment and earning
benefits of education for different ethnic groups;
• explores what factors affect the employment and pay benefits (returns) for people
from different ethnic groups who achieve the same qualification level, and shows
that there are different attainment outcomes for different ethnic groups at every
stage of the education system; and
• explores the significance of minority ethnicity in the type of higher education or
training attended, attainment in higher education and, therefore, in labour market
outcomes and earning capacity.

The Joseph Rowntree Foundation (JRF) commissioned this paper as part of its
programme on poverty and ethnicity which aims to understand the underlying
reasons for variations in low income and deprivation among different ethnic
groups in the UK and the problems caused. It also aims to contribute towards
solutions to these problems.

ISBN 978 1 85935 814 6

© Institute for Employment Studies 2011

www.jrf.org.uk
This paper was commissioned to inform the work of the JRF poverty and ethnicity
programme, which aims to understand the underlying reasons for variations in low
income and deprivation among different ethnic groups in the UK and the problems
caused. It also aims to contribute towards solutions to these problems.

The Joseph Rowntree Foundation has supported this project as part of its programme
of research and innovative development projects, which it hopes will be of value to
policy-makers, practitioners and service users. The facts presented and views
expressed in this report are, however, those of the authors and not necessarily those of
JRF.

Joseph Rowntree Foundation

The Homestead
40 Water End
York YO30 6WP
www.jrf.org.uk

This report, or any other JRF publication, can be downloaded free from the JRF website
(www.jrf.org.uk/publications/).

© Institute for Employment Studies 2011

First published 2011 by the Joseph Rowntree Foundation

All rights reserved. Reproduction of this report by photocopying or electronic means for
non-commercial purposes is permitted. Otherwise, no part of this report may be
reproduced, adapted, stored in a retrieval system or transmitted by any means,
electronic, mechanical, photocopying, or otherwise without the prior written permission
of the Joseph Rowntree Foundation.

ISBN 978 1 85935 814 6 (pdf)

Ref: 2608

Contact:
Helen Barnard
[email protected]

1
Contents

Page

Section 1 Introduction 3

Section 2 Experiences at different stages of the education system 4

Section 3 Post-16 and post-18 education 9

Section 4 Employer behaviour 13

Section 5 Possible recommendations and future directions 15

Notes 17

References 17

About the authors 23

2
Introduction
This paper seeks to draw out what we know and what we do not know about the
underlying causes of the differential employment and pay benefits (returns) of education
between different ethnic groups, and the ways in which these interact with other factors
which, such as gender and social class, which affect the benefits of education. Platt
(2007) has highlighted the high rates of poverty among some ethnic groups, and lower
employment rates for Pakistani, Bangladeshi and black African people of working age,
including those born in the UK, as well as the differential benefits of degree-level
education for Pakistani and Bangladeshi men and women. Strand (2008) has
highlighted how the attainment of white British pupils is polarised by social class to a
greater extent than any other ethnic groups. The educational under-achievement of
white British pupils in inner city schools has further drawn attention to the situation of
white working class pupils living in disadvantaged neighbourhoods with high levels of
poverty (Demie and Lewis, 2010a).

A growing acknowledgement of in-work poverty has led to an increased emphasis on

the importance of skills and qualifications to address child poverty (Bradshaw, et al,
2006) and labour market disadvantage (Green and Owen, 2006) and increase social
justice (HM Treasury, 2006). Moreover, poverty can be transmitted across generations
via educational disadvantage; childhood poverty is associated with lower educational
attainment which, in turn, is associated with low income in adulthood (Smith and
Middleton, 2007).
Increased education reduces out-of-work poverty by increasing the likelihood of being in
paid work, and reduces in-work poverty by increasing earnings. (Smith and Middleton,
2007). Both the level and type of qualification are key influences on the probability of
being in employment and lifetime earnings (Machin and McNally, 2006). The strong
relationship between qualifications and wages is evident. For example, people who
achieve level 2 vocational qualifications earn substantially more than those who do not
(DIUS, 2007). Those from economically disadvantaged backgrounds potentially get the
highest benefits from education (Machin and McNally, 2006). This paper seeks to
marshal the available evidence regarding differential benefits from education by
ethnicity, exploring:

• What factors affect the employment and pay returns for people from different
ethnic backgrounds who achieve the same qualification level? How, and at what
stage, do they have an impact? How does this impact on patterns of poverty?
• What scope is there for changing the situation so that education provides a more
effective and equitable ladder out of poverty? To what extent does the capacity
for change lie within or outside the education system itself?
The paper is framed in terms of the stages from early learning to higher education
participation, and seeks to draw out both individual and structural factors, with a primary
focus on employment and wage returns. It seeks to identify explanatory factors for
differential returns and highlight priority issues for further research (Gillborn, 2010).

There is a large econometric literature exploring the returns to education. Because of

the difficulties in comparing like with like even within the same family (as birth order,
changes in parental income and so on affect outcomes) some studies have
concentrated on same-sex twins, while others have sought to control for observed

3
differences by means of statistical techniques such as propensity score matching. This
provides some indication of the complexities in seeking to make comparisons based on
populations rather than individuals, and populations which are known to differ in many
salient ways. It can also be difficult to separate the causal effect of qualifications on
earnings from the fact that individuals with certain characteristics (often unobserved)
may select to participate in certain types of learning. It is necessary to keep this in mind
when interpreting and analysing the evidence presented (Machin and McNally, 2006).

Experiences at different stages of the education

system
Table 1 summarises the research evidence on key differentials by ethnicity, gender and
social class at different stages of the educational process. Some additional issues are
also highlighted in the text which follows.

4
Table 1: Summary of research evidence on differential representation and outcomes by educational stage
Educational Participation Outcomes Other comments
stage
Early years Non-white children under- Some ethnic minority groups (black Caribbean, black Attending pre-school shows positive effects on
represented. African and those with ESOL needs) make better children’s later outcomes for
progress than white British children (Sammons, et al, attainment)(Strand,1999; Sammons, et al,
2002). 2008). Disadvantaged pupils show higher
attainment later if they had previously attended
highly effective pre-school.
Primary school NA – compulsory Children of mixed white and Asian heritage do best at Poor reading ability and social skills (more
this stage. Mixed white and black Caribbean children common among boys) at this stage are
do less well than average (Tikly, et al, 2004). indicators of likely future disadvantage
(Goodman and Gregg, 2010).
Secondary NA – compulsory Poverty is largest driver of differential performance – Notable decline in performance for black
school three times that between different ethnic minority Caribbean boys between Key Stage 2 and Key
groups who are equally disadvantaged (Gillborn, Stage 4, indicating that potential is not being
2008a) met (Kingdon and Cassen, 2007).
Notable gender disparities with boys (especially black
Caribbean boys and white boys from deprived
households) doing worse (Kingdon and Cassen, 2007).
Post-16 Non-white students over- Pakistani and Bangladeshi young people achieve Limited take-up of apprenticeships and
education represented in FE colleges, fewest qualifications at this stage (Tolley and Rundle, vocational qualifications by minority ethnic
and middle class students 2006). groups and poor progression on completion for
under-represented (Connor, those who do take this route (DCSF/DIUS,
et al, 2004). Middle class 2008); Fuller and Davey, 2010).
students more likely to attend
th
school 6 forms.
Post-18 Minority ethnic groups Students from minority ethnic groups are less likely to Black and Asian students more likely to enter
education generally over-represented, achieve a higher degree class. The only exceptions to via clearing (Purcell, et al, 2008).
apart from black Caribbean this are the ‘other black’, ‘mixed’ and ‘other’ groups Asian students more likely to live at home
men (Torgerson, et al, 2008). (Broeke and Nicholls, 2007). while studying (Purcell, et al, 2008).
White men from lower socio- Minority ethnic students generally older on
economic groups under- entry to HE.
represented (Aynsleya and
Minority ethnic students concentrated in low-
Crossouarda, 2010)
tariff (mainly post-1992) universities.

5
Early years education
Strand (1999) has shown that pupils with early education had higher attainment than
those with no early education. The positive impact on attainment increased in relation to
the amount of early education received (Strand, 1999). Recent research corroborates
this, with evidence that attending a pre-school has a positive effect on children’s later
outcomes for attainment. In particular, disadvantaged pupils show higher attainment in
Year 6 if they had previously attended an effective pre-school (Sammons, et al., 2008).
Participation in good quality pre-school education is most important to those children
who do not enjoy a satisfactory home learning environment (Sylva, et al, 2007). It is the
quality of the pre-school attended, though, that is important. Attending a high quality
pre-school leads to a stronger and more enduring effect on outcomes for attainment in
English and mathematics (Sammons, et al., 2008.

Perhaps not surprisingly, the potential importance of pre-school for life outcomes has
been recognised by policy-makers, for example, in establishing the Sure Start children’s
centres. The impact of Sure Start has been shown to be positive, on balance. Schools
have reported improved attitudes to learning and social development among children
who have used Sure Start services, easing their transition into primary school (Ofsted,
2009).

Some research evidence suggests there is a link, albeit indirect, between the cognitive
and social competences developed in childhood and individuals’ highest educational
attainments, and their later employment and earning (Carneiro, et al., 2006). However,
Johnson and Kossykh’s (2008) extensive review of literature on early years, life
chances and equality found no evidence that directly linked earnings or employment
rates to observed ethnic differences in early years experiences.

Despite the positive impact of early years education, it is known that fewer children from
ethnic minority groups participate in formal pre-school childcare, compared with white
children (Fitzgerald, et al., 2002). Johnson and Kossykh (2008) note that mothers from
ethnic minority groups are more likely to stay at home to look after their children, and to
rely more on a network of extended family members, friends and neighbours. This
produces an interesting dichotomy, particularly as most ethnic minority children tend to
have better outcomes at primary school and beyond. This, in turn, raises an important
question about the extent to which ethnic minority children benefit from a positive home
learning environment, which may ameliorate the possible disadvantage of not attending
formal pre-school.

Primary and secondary school

The advantage of early years education has been shown to be visible at Key Stage 1
(age 4 to age 7); and pupils who receive early education have higher attainment than
those with no early education. The key question though, is at what precise age the
ethnic gaps in particular first appear. Strand’s (1999) study of inner London pupils
showed that black pupils with high attainment at age 4 and white pupils from
economically disadvantaged backgrounds, all made less than expected progress during
Key Stage 1. Indeed at this stage it was already apparent that more able black
Caribbean pupils in particular made relatively poor progress, compared to their white
peers. In contrast, Chinese pupils made more progress than their white peers. It is also
significant that Indian pupils from low socio-economic background had the highest level
of progress at primary school. Strand’s study highlighted the fact that although Indian,
6
Bangladeshi and Chinese pupils all started their primary school education with lower
attainment than white pupils, they had caught up by the end of Key Stage 1 (Strand,
1999).

On the whole, the already large gap in attainment at age five between children from the
poorest and richest backgrounds appears to increase rapidly during the primary school
years (Goodman and Gregg, 2010). Recent research evidence shows that overall, boys
outnumber girls as low achievers by a ratio of three to two, and boys have weaker
reading and writing skills at primary school. This has (negative) repercussions at later
stages, as children who have poor reading and writing skills at primary school are more
likely to become low achievers at age 16.

With regard to ethnicity, Chinese and Indian students are known to be the most
successful in avoiding low achievement, but also have the greatest probability of escape
from low achievement at age 11. Cassen and Kingdon (2007) have shown that by age
16 (Key Stage 4), almost nine out of ten (86 per cent) Indian children who at age 11
(Key Stage 2) were in the bottom 10 per cent of achievement, have climbed out of it.
(Thirteen per cent of the Indian students had moved into the highest achievement
category, compared with fewer than three per cent of white British students). On the
other hand, Cassen and Kingdon (2007) estimate that only 59 per cent of black
Caribbean boys who are in the top half of performance at Key Stage 2 remain there at
Key Stage 4. (This figure is significantly lower than for pupils from the white British [76
per cent] and other ethnic groups [76.4 per cent of Bangladeshis, 78.9 per cent of
Pakistanis, and 87.4 per cent of Indians]). Black African pupils present a mixed picture,
with regard to attainment. At age five, they attain higher literacy scores than expected,
but do worse for numeracy. By age 10, they are doing worse than expected for literacy
(Sylva, et al., 2007). However, together with Bangladeshis and Pakistanis, black African
students achieve higher GCSE scores than equivalent white students (Wilson, et al.,
2006).

The potential explanations put forward for the decline in the performance of black
pupils, particularly black Caribbean pupils, and hence the ethnic gaps, include the
quality of schools attended by pupils from different ethnic groups (Cassen and Kingdon,
2007), low teacher expectations of black pupils in English schools (Gillborn, 2008b), and
perceived low returns to educational qualifications in a prejudiced labour market
(Kingdon and Cassen, 2007). Cassen and Kingdon (2007) suggest that school quality
makes a difference to outcomes, even after taking into account students’ social and
economic circumstances. They argue furthermore that disadvantaged students and
minority ethnic students are likely to attend worse-performing schools, which in turn
affects their performance adversely. However, Strand (2010) cautions against uncritical
interpretation of data from test results at Key Stage 2 as identifying low-quality schools
as the cause of black pupils’ underachievement. His analysis of an entire English
national cohort of over 500,000 pupils shows no evidence of significant differential
school effectiveness in progress by ethnicity. More particularly, there was no evidence
that an ethnic gap arises from black Caribbean pupils attending poor quality or less
effective schools. On the other hand, the schools that were most effective for white
British pupils were also most effective for black Caribbean pupils.

In terms of benefits from education, de Coulon et al (2007) suggest that the best
predictor of how skilled an adult will be is his or her skill level in primary school. In this
regard, cognitive test scores obtained in primary school are important determinants of
adult basic skills.
7
At secondary school, pupils are allocated to different ‘tracks’ at ages 12 and 13,
according to their (academic) ability. The different tracks include GCSEs or equivalent
qualifications such as Young Apprenticeships 1 (Newton, et al., 2007). There is
increasing consideration of ability grouping or curriculum tracking as a potential factor to
explain the (differential) attainment of students from different ethnic groups. Several US
studies have shown that black students are disproportionately placed in low-ability
groups or tracks early in their educational careers, and that such placement leads to the
development of negative attitudes to learning and, consequently, to poorer attainment
(Strand, in press). In the UK, there is evidence that black Caribbean pupils are
disproportionately entered for lower tier maths and science examinations at age 14.
Strand (in press) has shown that black Caribbean students are the only ethnic group to
be consistently under-represented, relative to white students in entry to higher maths
and science test tiers. Furthermore, this under-representation is not a reflection of their
lower prior attainment; nor of differences in gender, social class, and a wide range of
contextual variables. Strand concludes it is possible that teachers’ judgements of black
Caribbean students’ academic potential may be distorted by perceptions of their
behaviour as more problematic. This may, in turn, lead to a tendency to underestimate
their academic ability.

While black Caribbean children (particularly boys) have been consistently identified as
underachieving at secondary school level, it is perhaps pertinent to point out that other
research shows that around half of all low-achieving school leavers are white British
males (Kingdom and Cassen, 2007; Cassen and Kingdon, 2007). Indeed, Strand
(2008) has noted that after all socio-economic factors are taken into account, white
British pupils from low socio-economic classification (SEC) homes made the least
progress over the course of secondary school (Strand, 2008). In this regard it is
particularly notable that the white Traveller group are the worst performers at secondary
school, with one in five (20 per cent) of Key Stage 4 takers achieving no GCSE/GNVQ
passes (Cassen and Kingdon, 2007).

Research evidence also suggests that students from different ethnic groups are not
evenly represented in Young Apprenticeships. It is especially difficult to encourage
young ethnic minority women to participate in Young Apprenticeships (Newton, et al.,
2007).

The skills and qualifications gained by young people, and how these translate into adult
outcomes, are also influenced by more subtle differences in secondary school
experiences, relating more broadly to feelings of inclusion and opportunity. For
example, staff training and provision of appropriate role models have been identified as
important in meeting the needs of mixed heritage learners, and attenuating feelings of
exclusion (Tikly, et al., 2004).

8
Post-16 and post-18 education
Rates of staying-on in full-time education at 16 have for some time been higher among
ethnic minority groups than whites (Connor, et al., 2004). High rates of post-16
participation among some minority ethnic groups, such as Chinese, Indians, Pakistanis
and black Africans, have been explained by differences in cultural attitudes towards
education in general, and higher education in particular (Bhattachayya, et al., 2003;
Torgerson, et al., 2008). There is also a motivation among ethnic minority groups to
continue in education to gain higher qualifications rather than enter lower-skilled jobs
(Howard, 2009). Linked to this is the expectation that better qualifications will reduce the
effect of possible future racial discrimination in the labour market (Connor, et al., 2004).

The institution attended for post-16 study is an important influence on later higher
education (HE) choices (Tolley and Rundle, 2006). In this regard the significance of
over-representation of minority ethnic students in further education (FE) colleges after
leaving school is that university acceptances of students from FE college background
are lower than for those from traditional academic backgrounds (e.g. those attending
school sixth forms). As will be seen later, ethnic minority participation in post-18
education is clustered within particular HE institutions, and based mainly in London and
other urban centres with large concentrations of ethnic minority populations.

Performance in post-16 and post-18 qualifications affects not only HE access, but also
experiences in the labour market as a new graduate. It has been suggested that the
initial higher unemployment rates experienced by ethnic minority graduates, compared
with white graduates, is partly explained by, among other factors, their entry
qualification and entry route into HE (Connor, et al., 2004). As will be seen later, some
large employers focus their recruitment on targeting graduates with traditional entry
qualifications into university.

Vocational versus academic qualification

People who achieve any type of qualification at all are more likely to be employed than
those who don’t. However, it is widely recognised that some qualifications bring a
greater rate of return than others. Academic qualifications are generally considered to
have higher wage returns than vocational qualifications (Dearden, et al., 2000). In
particular, the wage returns to vocational qualifications are known to be very variable.
Jenkins et al (2007) show there are substantial returns to higher level vocational
qualifications, and smaller but nonetheless significant returns to some, but not all,
intermediate and lower level vocational qualifications (Jenkins, et al., 2007).
On the whole, Level 2 qualifications have less earning potential compared with Level 3
(DBIS, 2010). Nevertheless, people with five or more GCSEs at A*–C (Level 2
qualifications) earn around 9–11 per cent more than those without, and are around 3
percentage points more likely to be employed (Jenkins, et al., 2007). Even more
significant, people with Level 2 Apprenticeships earn on average around 16 per cent
more than those who have other qualifications at Level 2 or below (McIntosh, 2007). For
individuals who leave school without five GCSEs at A*–C, a number of vocational Level
2 qualifications offer substantial wage benefits when held as the highest qualification.
Thus, BTEC First or General Diplomas have a return of around 13 per cent; City and
Guilds Craft around 5–7 per cent, and RSA Diplomas (women only) around 17 per cent
(Jenkins, et al., 2007).

9
There are mixed views about the returns to low-level vocational qualifications. Some
research evidence appears to show that low-level vocational qualifications (defined as
below Level 2) do not have any return (Dearden, et al., 2000; Sianesi, 2003). On the
other hand, de Coulon et al (2007) suggest there is a direct wage premium from having
Level 1 numeracy, as a result of the greater increase in demand for such skills in recent
years, such that an additional standard deviation in literacy results in about 14 per cent
higher earnings, and about 12 per cent higher earnings for similar numeracy results.

There is variation between ethnic groups with regard to following either academic or
vocational post-14 (YAs), post-16 and post-18 routes to gain further qualifications. For
example, parents and young women from some Asian families have been shown to
prefer A levels as a better path to further education and a ‘good job’. Few consider
studying for vocational qualifications (Bagguley and Hussain, 2007). It is not clear,
though, whether or not this hinders success in the labour market. But there are serious
issues for ethnic minority groups around gaining access to specific programmes such as
apprenticeships. In comparison to their numbers in the population as a whole, ethnic
minority young people are significantly under-represented in apprenticeships (Fuller and
Davey, 2010). They are less likely than white British young people to gain an
apprenticeship upon completion of a pre-apprenticeship course. Ethnic minority
apprentices are also less likely than white apprentices to progress to a related job after
completion of a framework apprenticeship (DCSF/DIUS, 2008).

Higher education
The qualification with the highest rate of return is a first degree, and it is therefore
appropriate that so much emphasis should have been laid on the widening participation
agenda in recent years. However, there are very large variations on the return to a first
degree, depending on a range of factors which are summarised in Table 2.

Table 2: Factors affecting returns on first degree

Positive impact Negative impact Limited
evidence
Pre-1992/high-tariff institution* Post-1992/low-tariff institution* Part-time study
Male Studied in home town* Mature student*
Female from higher social class Lower degree class*
background Arts and humanities subjects**
Maths and science subjects Working in public sector**
Higher degree class (males) North or ‘peripheral’ UK region
High status occupations Limited regional mobility after
London, south-east, south-west or graduation (including return to home
east of England town)*
Non-white ethnicity
Cohort effect – declining return as
number of graduates increase
*High degree of correlation with non-white ethnicity
**Highly correlated with female gender

Source: Ramsey, A. (2008)

It has been clear for some years now that minority ethnic groups have higher
participation rates in higher education (HE) than the white group (Connor et al., 2004;
Bhattachayya, et al., 2003; Modood, et al., 1997). However, some groups have higher
10
participation than others, and there are significant gender differences between and
within ethnic groups. The highest participation rates (over 60 per cent) are among
female black and male Asian groups, compared with 56 per cent of all minority ethnic
groups and 38 per cent for the white group. (It is important to bear in mind that the white
group is very much larger and more diverse in composition. Connor et al (2004) have
cautioned about distortions that can be produced by comparing student and general
population figures to indicate relative HE participation of minority ethnic groups.) These
overall participation figures, though, mask important differences in the participation
pattern of minority ethnic groups in HE. Ethnic minority undergraduate students are on
average older than their white peers (Tolley and Rundle, 2006). A number of reasons
have been suggested for this, including delaying entry in order to re-sit examinations to
improve grades and entering via access qualification routes.

Institution choice
Ethnic minority students are concentrated in the newer (post-1992) universities in urban
areas. This reflects a variety of factors, including their residential concentrations in
those areas, differences in entry requirements between the pre-92 (older) and the post-
92 universities, the courses available in the different institutions, personal and cultural
preferences for living at home or in an ethnically diverse area, student preconceptions
about particular universities, and apparent bias in admissions at some institutions.
(McManus, 1998; Purcell, et al., 2008). Shiner and Modood (2002) found that ethnic
minority candidates are penalised by old universities, although they did not find similar
or evident bias among new universities. Recent work comparing high and low tariff
universities has identified a strong bias towards ‘traditional’ entrants (with A levels,
applying direct from school) in high-tariff institutions (Purcell, et al., 2009).

Subject choice

Unpicking the reasons for subject choice is complex, although the Futuretrack research
project is beginning to shed valuable light on these issues (Purcell, et al., 2008). A
widely noted preference for ‘traditional’ professional subjects among some minority
ethnic groups may affect both the levels of engagement and achievement, and can lead
to over-representation in certain subjects, thereby increasing competition for jobs in
these areas (Bagguley and Hussain, 2007; Barer, 2002). Access to well-informed and
appropriate (non-stereotyped) advice from parents and educational institutes may be
important here; increasing access to such advice, differentiating it to meet the needs of
boys, girls and minority ethnic groups and increasing the involvement of parents, are
key recommendations of one recent review (EHRC, 2009).

Output and attainment

After controlling for factors such as type of prior institution attended, term-time
employment, parental income and English as an additional language, being from an
ethnic minority group remains statistically significant in explaining HE attainment.
Students from minority ethnic groups are less likely to achieve a higher degree class,
compared with white British and Irish students. The only exceptions to this are the ‘other
black’, ‘mixed’ and ‘other’ groups (Broecke and Nicholls, 2007). The principal
explanatory factor for the difference in attainment appears to be the differences in entry
qualification into HE (Richardson, 2008a). Analysis of 2002 data on degree outcomes
shows that students who entered with traditional qualifications – i.e. A levels or Highers
11
– were more likely to achieve a higher class of degree than those with other
qualifications. Connor et al suggest that the way this ‘lifts’ achievement is more
pronounced for minority ethnic than white graduates (Connor, et al., 2004). This relates
back to the different entry routes/qualifications of different groups. Furthermore, ethnic
minority students are concentrated in post-1992 institutions, and it has been suggested
that these institutions are less successful in enabling ethnic minority students to gain
good degrees (Connor et al., 2004; Richardson, 2008b).

Labour market outcomes following higher education

Li et al (2008) have noted that the acquisition of educational credentials facilitates entry
into the labour market and enhances income levels for all equality groups. However,
education protects against lower employment rates and earning levels only to a degree,
and many people from ethnic minority groups experience poorer employment rates and
lower incomes than white people. Full-time degree graduates from all minority ethnic
groups have higher initial unemployment rates than white graduates, with the highest
rates among African, Chinese, Pakistani and Bangladeshi groups (AGCAS Race
Equality Task Group, 2008). A number of factors are associated with the variations in
unemployment by ethnicity. They include age, choice of subject and geographical
(regional) location (Connor, et al., 2004).

In difficult economic periods, ethnic minorities are disproportionately affected by rises in

unemployment. The performance of ethnic minorities in the current difficult economic
climate so far, however, is much better than in previous recessions. A TUC report
suggests that although ethnic minority unemployment rose during the early months of
the recession, the rise was not as steep as white unemployment (TUC, 2009). The
report suggests two possible reasons for this: the fact that a large proportion of ethnic
minority workers live in London, which experienced a net increase in employees in 2008
and the fact that the public sector, where ethnic minority employment is concentrated,
has not seen the same extent of job loss as the private sector in the early stages of the
recession. On the whole, black or black British people aged 16 to 24 years old currently
have the highest rates of unemployment (48 per cent). There has also been a recent
rise in unemployment for all graduates, affecting in particular those who graduated in
2009 (IPPR, 2010).

12
Employer behaviour
Employer behaviour is a key structural factor influencing the benefits of education for
different ethnic groups. There is considerable evidence that employer practices continue
to disadvantage certain ethnic groups in the UK labour market. With the exception of
those of Indian ethnicity there was little change in the employment position of minority
ethnic groups between 1996/7 and 2004/5, and some groups such as those of black
African and Caribbean ethnicity, and Pakistani and Bangladeshi women, face notable
labour market disadvantage (Li, et al., 2008). These can be seen in particular in pre-
recruitment application processing and selection activities (Wood, et al., 2009). Some
research evidence has highlighted the fact that some ethnic minority groups have
shown a greater propensity towards self-employment as a way of avoiding labour
market discrimination (Clark and Drinkwater, 2006).

Figure 1 is a visual representation of how these many and complex factors interact to
affect the returns to a first degree.

13
 Figure 1: The impact of individual and structural factors on returns to degree-
level education

INDIVIDUAL FACTORS ADMISSION POLICIES

AND PRACTICES
■ A level points
(educational capital) ■ Tariff
■ Institution attended ■ % from state schools,
(college/school) deprived areas
UNIVERSITY ■ Availability of bursaries
■ Age
etc.
■ Advice & guidance from ■ Location
parents/educational
■ Subject
institution
■ Type of institution
■ Personal preferences
■ Degree grade
■ Cultural norms

INDIVIDUAL DECISION RETURNS EMPLOYER PRACTICES

■ Mobility ■ Odds of ■ Preference for certain

employment institutions and subjects
■ Choice of job/sector
■ Earnings ■ Recruitment practices
(e.g. ‘milk round’ in ‘old’
universities)
■ Discrimination

ECONOMY

■ Pool of graduates
available and demand
for graduates
■ Impact of recession at
graduation ‘scarring’

14
Possible recommendations and future directions
This paper has highlighted some key factors that appear to impact on the benefits
(returns) from education for different ethnic groups. It is clear that there are different
attainment outcomes for different ethnic groups at every stage of the education system.
Fewer children from ethnic minority groups participate in formal early years education,
but it is not clear to what extent this results in significant disadvantage in attainment for
all ethnic minority groups at primary school. Chinese, Indian and Bangladeshi pupils in
particular appear to make more progress and catch up with their white peers at Key
Stage 1. Chinese and Indian students are also more successful at avoiding and
escaping low achievement at age 11. Although black Caribbean boys in particular
consistently underachieve at secondary school, it is white British males, in particular
those from lower socio-economic and white Traveller groups, who are the worst
performers at secondary school. Overall, ethnic minority groups also have high rates of
post-16 participation, a fact attributed largely to a positive cultural attitude towards
education in general, and higher education in particular. Being from an ethnic minority
group, however, is significant in explaining the type of higher educational institution
attended, and in attainment in higher education. This in turn has significant impact on
labour market outcomes and on earning capacity.

The variations in outcomes between different ethnic groups fluctuate depending on life
stage. Some ethnic minority groups have high attainment at several stages of
education but this does not continue into the later stages and adulthood. Other groups
have consistently low attainment at most stages of education. The attainment of the
white British group is particularly strongly affected by socio-economic status, leading to
polarised outcomes at each lifestage.

What emerges clearly from this analysis is that disadvantage does not necessarily stay
consistent over a life course. But the evidence presented in this distillation paper
nevertheless shows that there is a possible cumulative effect of poor attainment in
education. Early years education appears to be critical, and a gap in performance from
as early as pre-school can be exacerbated at primary and secondary school levels.
Poor results at the secondary level have an adverse impact on the types of qualification
taken at post-16, while relatively poor performance at post-16 has an influence on
routes into HE, and subsequent graduate destinations. Although the process is not as
simple and straightforward, there are nevertheless clear links between the different
stages.

The evidence in this paper also suggests that the differences in the performance of
different ethnic groups emerge at a very early stage of education. What is not clearly
understood, though, is why or how some groups overcome the disadvantage that is
evident at the early stages. Social class has been identified as one of the most
significant factors that influence educational outcomes (Marshall, 2002; Cassen and
Kingdon, 2007; Strand, 2008). Here too, it is less clear why and how different ethnic
groups from the same or similar social class backgrounds achieve different outcomes.
In particular, it is not clear to what extent the strong progress of ethnic minority pupils
from lower socio-economic backgrounds, and the poor progress of white British pupils
from low similar backgrounds, could be attributed to the fact that the former have good
quality home learning environments and higher aspirations, especially given that they
are under-represented in early education and childcare. But it has been suggested that
social class seems to matter more in relation to educational attainment for white British
pupils than for minority ethnic groups (Demie and Lewis, 2010a). Indeed, it has been
15
alluded to that in contrast with the white British, pupils from ethnic minority groups
improve their educational performance because their parents and communities value
education more, and see this as a way of addressing the problem of disadvantage they
face in society in general. There is an implied assumption here that the persistent poor
performance of white working class boys is a result of their parents not valuing
education to the same or similar extent as ethnic minorities (Demie and Lewis, 2010b).
The issue of ‘why working class boys get working class jobs’ remains a cause for
concern (Li, et al., 2008). Further research and policy initiatives are required on the
continuing under-performance of white British pupils from lower socio-economic groups
in school and work.

There is a distinct lack of analyses that provides a breakdown of outcomes in relation to

social class by gender and ethnic group beyond the age of 16. Furthermore, education
statistics do not often include accurate measures of social class. It is necessary to
understand this better if the link between education and returns for different ethnic
groups is to be fully understood (Gillborn, 2009). One possibility would be to investigate
the role of multiple measures of social class together. Such an analysis could take into
account the different levels of social class (e.g. geographical and parental), and how
these might explain differences in returns from education for different ethnic groups.

One important way for research to examine some of the differences in returns from
education for different groups is through more sophisticated longitudinal analysis. A
study linking administrative pupil data through to first employment destinations, for
example, would not only allow us to see what the predictors are for unemployment and
low wages, but it would also enable us to see at what stages these predictors come into
play. For example, Key Stage 2 (age 14) performance could be just as strong a
predictor of graduate first destinations as Key Stage 4 and 5 attainment. (Examples of
potential linked datasets that could be used in this type of study would be the National
Pupil Database (NPD), Higher Education Statistics Agency (HESA) enrolment data and
the Longitudinal Destination of Leavers from Higher Education (DLHE) survey.) A
similar type of longitudinal analysis has been conducted by Chowdry et al who
investigated widening participation. They found poor attainment in secondary schools to
be more important than barriers at the point of entry into HE in explaining lower HE
participation rates amongst students from disadvantaged backgrounds.
This type of large-scale quantitative analysis would allow for the investigation of
ethnicity, socio-economic status and gender and enable us to see what the wide-spread
patterns are. Some of the evidence presented in this paper has highlighted the fact that
different ethnic groups from the same socio-economic backgrounds have different
trajectories. It would be important to include different measures of socio-economic
status together as a means of getting a rounded picture of its effects as a predictor of
outcomes for people from different ethnic groups. Thus, for example, geographical
socio-economic indicators such as the Income Deprivation Affecting Children Index
(IDACI) and Index of Multiple Deprivation (IMD) could be combined with family level
indicators such as Free School Meal (FSM) status.

16
Notes
1 The Young Apprenticeships programme involves studying the normal curriculum at
school and spending 50 days across Years 10 and 11 gaining work experience with
either an employer, training company or college. During this time, students work
towards work-related qualifications (e.g. National Vocational Qualifications (NVQs)).
Directgov (2010), ‘Work experience in Years 10 and 11’.
http://www.direct.gov.uk/en/EducationAndLearning/14To19/OptionsAt16/DG_400132
7.

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About the authors
Nii Djan Tackey
Research Fellow, Institute for Employment Studies

Helen Barnes
Principal Research Fellow, Institute for Employment Studies

Priya Khambhaita
Research Officer, Institute for Employment Studies

23