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This article examines the transition from compulsory school to education and work for children of immigrants and native Danes by focusing on NEET (Not in Education, Employment or Training) status. Using administrative register data, I first examined the overrepresentation of children of immigrants in the NEET group three years after completion of compulsory school. I then analysed: (a) whether differences in family background and grades can explain this overrepresentation and (b) whether NEET status during this period is associated with a high risk of NEET status four years later (i.e., seven years after compulsory school completion). My results show higher NEET rates for children of immigrants than for native Danes. Regression analysis of three year groups suggests, unfavourable family characteristics explain the higher probability of NEET status among children of immigrants in two of these groups. NEET status in the three-year period after school completion is associated with higher risk of NEET status four years later for both children of immigrants and native Danes.