Economic opportunities across racial and ethnic groups in the United Kingdom
Lead Research Organisation:
Institute for Fiscal Studies
Department Name: Grants Administration Department
Abstract
The UK is increasingly ethnically diverse. There have been significant improvements in the economic and educational success of some ethnic minorities in recent years, but not all have shared in this success, and nor has educational success always translated into gains in the labour market. Substantial ethnic inequalities in multiple domains across the life course persist, and many continue across generations. The experience of different minority groups has varied in terms of whether and how far their economic outcomes have converged to those of the majority. There have been equally important differences within minority groups, between men and women and by social class background.
Even as the extent of ethnic inequalities are recognised to be of public and political salience, the causes and solutions remain contested. Despite an important body of existing qualitative and quantitative research from multiple disciplines, substantial gaps in knowledge and for robust policy recommendations remain.
The ambition of this project is to establish new, authoritative and policy relevant evidence and understanding in this contested area. We will do so by providing a detailed account of how ethnic economic inequalities emerge, evolve and are maintained across the life course at a level of detail and in ways not previously possible. We use newly available administrative and linked data tracking different life stages, alongside longitudinal survey data and new data collection. Developing an integrated programme of work across domains allows robust conclusions to be drawn about what drives disadvantage for different ethnic groups, and for men and women and different social classes within groups.
We consider issues of identity and categorisation, the extent to which individuals identify with specific groups, the attitudes of the majority, and implications for how we understand ethnic inequalities. Looking over the course of life, we examine educational pathways and outcomes, contact with the criminal justice system, entry into the labour market and working careers, and the accumulation of wealth and its intergenerational transmission. We shed light on inequalities in school performance, the link between school exclusions and contact with the criminal justice system, the pathways into higher education and vocational training, and the impact of policy reforms. We look more broadly at how those leaving full-time education with different levels of qualifications fare in terms of the jobs they enter, their career progression, and the benefits their jobs provide in terms of training, pension rights and employment security. We examine how levels and sources of wealth differ across groups, and how they are differentially transmitted across generations.
The comprehensive data we use enables us to provide innovative insights for policy and inform public debate and narratives on these issues by showing what factors are important at different stages, examining the role of individual and families, institutions such as schools, firms and employers, geographical location, networks and peers, as well as stereotyping and discrimination.
The inter-disciplinary led team will build cumulative evidence to provide clear insights for policy as to what can mitigate inequalities and what policy levers are more or less effective. Given the complexity and salience of the issues involved, we will engage in deliberative discussions with stakeholders, the public, practitioners and policy-makers to inform and communicate reliable insights into the causes of systematically unequal outcomes, shaping understanding of effective ways and times at which to intervene. We will build capacity for a new generation of researchers to study and engage with these issues. Ultimately, we hope this will leave the UK better able to ensure economic opportunities are provided to all, harnessing all the talents of its increasingly diverse population.
Even as the extent of ethnic inequalities are recognised to be of public and political salience, the causes and solutions remain contested. Despite an important body of existing qualitative and quantitative research from multiple disciplines, substantial gaps in knowledge and for robust policy recommendations remain.
The ambition of this project is to establish new, authoritative and policy relevant evidence and understanding in this contested area. We will do so by providing a detailed account of how ethnic economic inequalities emerge, evolve and are maintained across the life course at a level of detail and in ways not previously possible. We use newly available administrative and linked data tracking different life stages, alongside longitudinal survey data and new data collection. Developing an integrated programme of work across domains allows robust conclusions to be drawn about what drives disadvantage for different ethnic groups, and for men and women and different social classes within groups.
We consider issues of identity and categorisation, the extent to which individuals identify with specific groups, the attitudes of the majority, and implications for how we understand ethnic inequalities. Looking over the course of life, we examine educational pathways and outcomes, contact with the criminal justice system, entry into the labour market and working careers, and the accumulation of wealth and its intergenerational transmission. We shed light on inequalities in school performance, the link between school exclusions and contact with the criminal justice system, the pathways into higher education and vocational training, and the impact of policy reforms. We look more broadly at how those leaving full-time education with different levels of qualifications fare in terms of the jobs they enter, their career progression, and the benefits their jobs provide in terms of training, pension rights and employment security. We examine how levels and sources of wealth differ across groups, and how they are differentially transmitted across generations.
The comprehensive data we use enables us to provide innovative insights for policy and inform public debate and narratives on these issues by showing what factors are important at different stages, examining the role of individual and families, institutions such as schools, firms and employers, geographical location, networks and peers, as well as stereotyping and discrimination.
The inter-disciplinary led team will build cumulative evidence to provide clear insights for policy as to what can mitigate inequalities and what policy levers are more or less effective. Given the complexity and salience of the issues involved, we will engage in deliberative discussions with stakeholders, the public, practitioners and policy-makers to inform and communicate reliable insights into the causes of systematically unequal outcomes, shaping understanding of effective ways and times at which to intervene. We will build capacity for a new generation of researchers to study and engage with these issues. Ultimately, we hope this will leave the UK better able to ensure economic opportunities are provided to all, harnessing all the talents of its increasingly diverse population.
Publications
Atkinson I
(2025)
Hotel of Mum and Dad? Co-residence with parents among those aged 25-34
Gadenne L
(2024)
Exposure to air pollution in England, 2003-23
Stockton I
(2024)
Ethnic diversity of NHS doctors
| Description | BBC London - Hotel of Mum and Dad |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Bee Boileau gave an interview to BBC London about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | BBC Radio 5 Live- Hotel of Mum and Dad |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | David Sturrock gave an interview to BBC Radio 5 Live about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | BBC Wales- Hotel of Mum and Dad |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Bee Boileau gave an interview to BBC Wales about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | Ethnicity gaps in pension participation |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Professional Practitioners |
| Results and Impact | IFS researchers presented new findings exploring ethnic gaps in pension participation rates following the rollout of automatic enrolment. In particular, they examined the underlying causes of these gaps, their implications for wealth accumulation for different ethnic groups, and potential policy responses. After the IFS presentations, we had responses from Taha Choukhmane (Assistant Professor of Finance, MIT Sloan School of Management) and Athina Vlachantoni (Professor of Gerontology and Social Policy, University of Southampton), followed by questions from the audience. The event was chaired by Carl Emmerson (Deputy Director, IFS). |
| Year(s) Of Engagement Activity | 2025 |
| URL | https://ifs.org.uk/events/ethnicity-gaps-pension-participation |
| Description | Global- Hotel of Mum and Dad |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Bee Boileau gave an interview to Global Radio about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | IFS & UCL Policy Lab Roundtable on Ethnic Inequalities |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Postgraduate students |
| Results and Impact | The session helped shape the IFS's ongoing programme of research on racial and ethnic inequalities across the life course (https://ifs.org.uk/economics-race-and-ethnicity), led by Imran Rasul (IFS and UCL) with co-investigators Lucinda Platt (LSE) and Monica Costa-Dias (IFS and Bristol) |
| Year(s) Of Engagement Activity | 2024 |
| URL | https://ifs.org.uk/sites/default/files/2024-12/IFS%20%26%20UCL%20policy%20roundtable%20on%20ethnic%2... |
| Description | LBC Radio- Hotel of Mum and Dad |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | David Sturrock gave an interview to LBC Radio about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | Newsagents- Hotel of Mum and Dad |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Paul Johnson gave an interview to the Newsagents podcast about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |
| Description | Times Radio- Hotel of Mum and Dad |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | David Sturrock gave an interview to Times Radio about the 'Hotel of Mum and Dad' report. |
| Year(s) Of Engagement Activity | 2025 |