The labour market disparities of second-generation immigrants – CEPR

 

Report on the Labour Market Integration of Second-Generation Immigrants and its Implications for Sustainable Development Goals

Introduction: Integrating Immigrant Descendants as a Cornerstone for Achieving SDGs

The successful integration of second-generation immigrants—native-born individuals with immigrant parents—is fundamental to the long-term social cohesion and economic prosperity of European nations. This demographic’s access to education and employment directly impacts the achievement of several Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). This report analyses the current status of their integration, highlighting disparities that challenge the core SDG principle of leaving no one behind.

Key Findings in the Context of European Sustainable Development

1. Demographic Profile: A Growing Youth Population and SDG 8

The demographic landscape of the EU14 countries reveals a significant and youthful population of second-generation immigrants, whose future economic participation is critical for sustainable growth.

• Second-generation immigrants constitute 6% of the total population in EU14 countries, compared to 16% for first-generation immigrants.
• This population is exceptionally young: 42% are under the age of 15, and an additional 27% are aged 15-29. This demographic profile underscores the urgency of policies aligned with SDG Target 8.6, which aims to reduce the proportion of youth not in employment, education, or training (NEET).
• There is significant variation across member states, with the share of second-generation immigrants reaching 10% in Luxembourg but remaining below 3% in countries like Italy, Greece, and Portugal.

2. Educational Disparities: A Challenge to SDG 4 (Quality Education)

Educational attainment is a key determinant of labour market success and a primary focus of SDG 4. Analysis of the working-age population (25-64) reveals significant educational gaps that hinder progress towards inclusive and equitable education for all.

• Across the EU14, 26% of second-generation immigrants have attained at most a lower secondary education, compared to 21% of natives.
• Conversely, only 31% of second-generation immigrants have completed tertiary education, versus 37% of natives.
• These disparities, which widen when controlling for age and gender, indicate a systemic failure to ensure equal access to all levels of education as mandated by SDG Target 4.5. This educational disadvantage is a primary driver of subsequent inequalities in the labour market.

3. Employment Gaps: An Obstacle to SDG 8 (Decent Work) and SDG 10 (Reduced Inequalities)

Persistent employment gaps between second-generation immigrants and natives represent a significant barrier to achieving full and productive employment for all (SDG Target 8.5) and reducing inequalities of outcome (SDG Target 10.3).

1. In the EU14, the employment rate for second-generation immigrants is 73%, a full 5 percentage points lower than the 78% rate for natives.
2. The employment gap varies dramatically, from second-generation immigrants outperforming natives in Portugal (+7 percentage points) to facing severe disadvantages in Belgium (-17 percentage points), France (-8 percentage points), and the Netherlands (-7 percentage points).
3. Crucially, this employment gap persists even after accounting for differences in age, gender, and educational attainment. This suggests that the disparity is not merely a result of human capital differences but is driven by factors related to migration background, such as discrimination and institutional barriers, which SDG 10 explicitly seeks to eliminate.

4. Job Quality and Occupational Segregation: Barriers to Inclusive Growth

Beyond employment rates, the quality of work is a central component of SDG 8. Second-generation immigrants face disadvantages in securing high-quality jobs, a trend largely explained by educational deficits.

• Second-generation immigrants are more likely to be employed in elementary, low-skilled occupations (7% vs. 6% for natives) and less likely to hold high-skilled positions (45% vs. 49% for natives).
• These differences in job quality are almost entirely explained by disparities in educational attainment. This finding reinforces the critical role of SDG 4 in achieving SDG 8, as equitable access to quality education is a prerequisite for equitable access to decent work.

Policy Recommendations for Accelerating Progress on the SDGs

To address these challenges and align with the 2030 Agenda for Sustainable Development, targeted policy interventions are required.

• Advance SDG 4 (Quality Education): Implement policies to reduce early educational disadvantages through targeted support for students from immigrant backgrounds, ensuring they have equal opportunities to attain higher levels of education.
• Promote SDG 8 (Decent Work) and SDG 10 (Reduced Inequalities): Enact stronger anti-discrimination measures to tackle structural barriers in the labour market. Develop initiatives that connect second-generation immigrants with professional networks, mentorship programmes, and job placement services to ensure equal opportunity and reduce inequalities of outcome.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 4: Quality Education

• The article directly addresses educational disparities, stating that “second-generation immigrants are less educated than natives.” It highlights that they are less likely to complete tertiary education and more likely to have only attained lower secondary education. This connects to the goal of ensuring inclusive and equitable quality education for all.

SDG 8: Decent Work and Economic Growth

• The core of the article focuses on the “labour market integration of second-generation immigrants.” It analyzes employment outcomes, noting that second-generation immigrants have a “lower probability of employment than natives” and are more likely to be in “low-skilled, low-paid jobs.” This directly relates to the goal of promoting full, productive employment and decent work for all.

SDG 10: Reduced Inequalities

• The article is fundamentally about inequality between population groups (natives vs. second-generation immigrants) within countries. It discusses disadvantages in education and employment, and suggests that factors like “discrimination, limited access to social networks, and institutional barriers” contribute to these inequalities. The call for policies to reduce these gaps and tackle discrimination aligns with the goal of reducing inequality within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 4: Quality Education

• Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university.
  • The article directly relates to this target by showing unequal access to tertiary education. It states that across the EU14, “second-generation immigrants are less likely than natives to have completed tertiary education (31% versus 37%).”
• Target 4.5: By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations.
  • The article identifies second-generation immigrants as a group facing disadvantages that hamper their integration. The finding that “educational gaps explain disadvantage in job quality” underscores the need for equal access to education for this vulnerable group to prevent long-term social and economic exclusion.

SDG 8: Decent Work and Economic Growth

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
  • The article highlights a failure to achieve this target for second-generation immigrants, who are “5 percentage points less likely to be employed than natives.” It also points to a lack of “decent work,” as they are “more likely to be employed in elementary occupations” and “less likely to hold high-skilled positions.”
• Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training (NEET).
  • The article emphasizes the youth of the second-generation immigrant population, noting “42% are in the 0–14 age group” and “an additional 27% are aged 15–29.” Their lower employment and educational outcomes are directly relevant to the NEET rate, making their successful integration crucial for achieving this target.

SDG 10: Reduced Inequalities

• Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, colour, ethnicity, origin, religion or economic or other status.
  • The article’s entire focus is on the lack of economic inclusion for second-generation immigrants, evidenced by employment and job quality gaps. It explicitly states that ensuring their successful integration is “essential for the long-term social and economic cohesion of European societies.”
• Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard.
  • The article suggests that the employment gap persists even after controlling for education, which “suggests that other factors – such as discrimination… may play a significant role.” The recommendation for “stronger anti-discrimination measures” directly aligns with this target’s aim to ensure equal opportunity and reduce inequalities of outcome.
• Target 10.7: Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies.
  • The successful integration of immigrants and their children is a key component of well-managed migration policies. The article’s analysis of integration challenges and its call for policies to “tackle structural barriers” contribute to the knowledge base needed to implement effective policies as described in this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicators for SDG 4

• Indicator for Target 4.3: The article provides data that can be used to measure progress, specifically the “percentage of the working-age population (25–64 years old)” that has “completed tertiary education” and the percentage that has “attained, at most, lower secondary education,” broken down by immigrant background (second-generation vs. natives).

Indicators for SDG 8

• Indicator for Target 8.5: The article uses several indicators:
  • Employment Rate: It provides the employment rate for second-generation immigrants (73%) compared to natives (78%) and the employment gap in percentage points for various countries.
  • Job Quality/Skill Level: It measures the “probability of having an elementary or high-skill occupation,” noting second-generation immigrants are more likely to work in “low-skilled, low-paid jobs” (7% vs. 6%) and less likely to hold “high-skilled positions” (45% vs. 49%).

Indicators for SDG 10

• Indicator for Target 10.2 & 10.3: The article uses outcome-based indicators to measure inclusion and equality of opportunity:
  • The Employment Gap: The persistent “5 percentage point” difference in employment probability between second-generation immigrants and natives, even after controlling for education, is used as an implied indicator of unequal opportunity and potential discrimination.
  • The Educational Attainment Gap: The difference in tertiary education completion rates (31% vs. 37%) serves as a direct indicator of inequality in educational outcomes.
  • Share of Population: The article provides the “Share of second-generation immigrants in the total 0–74 population” (6% on average in EU14) as a demographic indicator to contextualize the scale of the integration challenge.

4. Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators Identified in the Article
SDG 4: Quality Education	4.3: Ensure equal access to tertiary education. 4.5: Ensure equal access to all levels of education for vulnerable groups.	Percentage of population (age 25-64) with completed tertiary education (31% for second-gen vs. 37% for natives). Percentage of population (age 25-64) with at most lower secondary education (26% for second-gen vs. 21% for natives).
SDG 8: Decent Work and Economic Growth	8.5: Achieve full and productive employment and decent work for all. 8.6: Reduce the proportion of youth not in employment, education or training (NEET).	Employment rate by immigrant background (73% for second-gen vs. 78% for natives). Employment gap in percentage points between natives and second-generation immigrants. Proportion of workers in elementary (low-skilled) occupations (7% vs. 6%). Proportion of workers in high-skilled occupations (45% vs. 49%). Age distribution of the second-generation population (42% aged 0-14, 27% aged 15-29).
SDG 10: Reduced Inequalities	10.2: Promote social and economic inclusion of all. 10.3: Ensure equal opportunity and reduce inequalities of outcome. 10.7: Facilitate orderly and well-managed migration.	The persistent employment gap (5 percentage points) after controlling for education, implying discrimination or structural barriers. Disparities in educational attainment and job quality as indicators of unequal outcomes. The call for specific policies (anti-discrimination measures, mentorship) as a measure of progress toward well-managed integration.

Source: cepr.org