There has been ongoing debate in the Netherlands in recent years about second-generation immigrant youth, a debate fuelled by two, rather persistent phenomena: high school dropout and unemployment among migrant youth. Fear exists that migrant youth will become marginalized. This raises the question to what extent the position of migrant youth can be viewed as manifesting downward mobility, leading to a form of segmented assimilation? This article examines the problems of education and dropout, and discusses the significance of the many statistics which either prove or refute the assumed gravity of the problem. Then follows an outline of the policy landscape and the concomitant ethnifying effects to complete the picture. We conclude that downward segmented assimilation is not the dominant trend, and end with a discussion of new forms of ethnic exclusion that lay the blame for not integrating well into Dutch society at the foot of migrant youth themselves.