Do scarring effects vary by ethnicity and gender?

Abstract

Being unemployed or inactive in youth leaves scars, but some people appear to be more successful than others in overcoming an initial disadvantaged situation. This chapter examines how early labor market experiences affect later employment and occupational opportunities for different groups. It compares the outcomes of White British men and women with those of second-generation ethnic minorities (Indian, Pakistani, Bangladeshi, and Caribbean) in England and Wales. It also discusses mechanisms affecting scarring and how they might vary across ethnic groups and genders. The analysis is based on the ONS Longitudinal Study. The examination follows individuals’ labor market experiences from 2001 (aged 16–29 years) to 2011 (aged 26–39 years). Having not been in employment, education, or training (NEET) has a less detrimental effect on later employment probabilities for Asian men than for White British men; the opposite is observed for Pakistani and Caribbean women compared to White British women.