Diversity in Education
Diversity in Education
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Ethnicity, Neighborhoods, and Human Capital Externalities

  • Census and NLSY data show strong patterns of residential segregation by ethnic group.
  • Ethnicity has an external effect on the human capital accumulation process.
  • Residential segregation is linked to the influence of ethnic capital on the process of intergenerational mobility.
  • Ethnic capital functions through neighborhood effects that influence intergenerational mobility.
  • Neighborhood effects alone do not account for the effect of ethnicity or intergenerational mobility, particularly for residents of ethnically segregated neighborhoods.
  • Ethnicity has an impact above and beyond parental and neighborhood effects for people who are frequently exposed to an ethnic environment.
  • Residential segregation and the external effect of ethnicity are linked, partly because ethnic capital summarizes the socioeconomic background of the neighborhood where the children were raised.
  • Ethnicity has an external effect, even among persons who grow up in the same neighborhood, when children are exposed frequently to persons who share the same ethnic background.
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