Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272407 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15780
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
ethnic diversity
fractionalization
polarization
school
occupational choice
JEL: 
H75
I21
J18
J24
Document Type: 
Working Paper

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