Does Ethnic Diversity in Schools Affect Occupational Choices?

Damiano Pregaldini (), Simone Balestra () and Uschi Backes-Gellner
Additional contact information
Damiano Pregaldini: University of Zurich
Simone Balestra: University of St. Gallen

No 15780, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: ethnic diversity; fractionalization; polarization; school; occupational choice (search for similar items in EconPapers)
JEL-codes: H75 I21 J18 J24 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2022-12
New Economics Papers: this item is included in nep-edu, nep-eur, nep-lma and nep-ure
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Working Paper: Does Ethnic Diversity in Schools Affect Occupational Choices? (2022)
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