NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Ethnicity, Neighborhoods, and Human Capital Externalities

George J. Borjas

NBER Working Paper No. 4912
Issued in November 1994
NBER Program(s):   LS

The socioeconomic performance of today's workers depends not only on parental skills, but also on the average skills of the ethnic group in the parent's generation (or ethnic capital). This paper investigates the link between the ethnic externality and ethnic neighborhoods. The evidence indicates that 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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Document Object Identifier (DOI): 10.3386/w4912

Published: American Economic Review, Vol. 85, no. 3 (1995): 365-390. citation courtesy of

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