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Does Ethnic Diversity in Schools Affect Occupational Choices?

Author

Listed:
  • Pregaldini, Damiano

    (University of Zurich)

  • Balestra, Simone

    (University of St. Gallen)

  • Backes-Gellner, Uschi

    (University of Zurich)

Abstract

We study how two distinct dimensions of peer ethnic diversity (ethnic fractionalization and ethnic polarization) affect occupational choice. Using longitudinal administrative data and leveraging variation in ethnic composition across cohorts within schools, we find evidence for two opposing effects. Ethnic fractionalization increases the likelihood of students sorting into people-oriented occupations while ethnic polarization reduces this likelihood. Using data on social and cognitive skills, we provide evidence that exposure to higher levels of ethnic fractionalization enhances the students' formation of social skills and increases the likelihood of students sorting into people-oriented occupations where the returns to these skills are higher.

Suggested Citation

  • Pregaldini, Damiano & Balestra, Simone & Backes-Gellner, Uschi, 2022. "Does Ethnic Diversity in Schools Affect Occupational Choices?," IZA Discussion Papers 15780, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15780
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    More about this item

    Keywords

    ethnic diversity; fractionalization; polarization; school; occupational choice;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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