Ethnic Diversity in Compulsory Schooling and Occupational Choices: Can Diversity Increase the Supply in Care‐Oriented Occupations

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ABSTRACT We investigate the effect of ethnic diversity on occupational choices, particularly in care‐oriented occupations which are scarce in many high‐income countries. We use administrative data of all students in Switzerland to study two diversity dimensions: ethnic fractionalization and ethnic polarization. We exploit variation across school cohorts to identify causal effects. We find opposing effects: ethnic fractionalization increases care‐oriented occupations, while ethnic polarization reduces them. One mechanism could be that ethnic fractionalization enhances social skills and thereby the benefits of choosing care‐oriented occupations. Thus, not only is the share of nonnative peers in schools important, but also the overall ethnic composition.

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Migration can contribute to economic growth. Its impact on ethnic diversity may also generate socio-cultural tensions and political instability. Having said that, ethnic diversity can play a role in both promoting and hindering economic growth depending on its form and extent. This role often rests on the levels of either ethnic fractionalization (usually related to higher economic growth) or ethnic polarization (more commonly associated with lower economic growth). Such considerations raise a question about the ways ethnic diversity mediates the relationship between internal migration and economic growth. The following paper responds to that question by focusing on different regions of Indonesia. Drawing on comprehensive statistics and updated classification of Indonesia’s ethnic groups, it presents new evidence on the archipelago’s ethnic diversity which is cross-referenced with recent fractionalization and polarization indexes. This methodological enhancement allows the study to translate with a greater degree of accuracy the mediation of ethnic diversity on the relationship between internal migration and economic growth across Indonesia’s regions than previously carried out. What emerges is a rather mixed picture of the intermediating role of ethnic diversity. There is a significant influence in various regions, but different sets of variables also modulate the relationship in others. We can also discern an identifiable link between the economic region in question, the indicators of ethnic diversity referenced, and the given rate of migration. Placed in composite relief, the findings draw attention to the uneven and complex character of Indonesia’s regional development.

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Ethnic Polarization, Potential Conflict, and Civil Wars
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The increasing incidence of ethnic conflicts, and the much-publicized consequences of these conflicts, have attracted the interest of many researchers in the social sciences. Many studies have addressed directly the issue of ethnic diversity and its effects on social conflicts and civil wars. Political scientists have stressed the importance of institutions in the attenuation or intensification of social conflict in ethnically divided societies. Recently economists have connected ethnic diversity with important economic phenomena like investment, growth, or the quality of government (William Easterly and Ross Levine, 1997; Alberto Alesina et al., 2003; Rafael La Porta et al., 1999). The number of papers dealing with the effects of ethnic diversity on issues of economic interest is growing rapidly. In this respect, it is common in recent work to include as a regressor in empirical growth estimations an index of ethnic fractionalization. There are several reasons to include such an indicator. First, some authors have argued that ethnically diverse societies have a higher probability of ethnic conflicts, which may lead to civil war. The political instability caused by potential ethnic conflicts has a negative impact on investment and, indirectly, on growth. Second, ethnic diversity may generate a high level of corruption which, in turn, could deter investment. Finally it has been argued that in heterogeneous societies the diffusion of technological innovations is more difficult, especially when there is ethnic conflict among groups in a country. Business as usual is not possible in a society with a high level of potential ethnic conflict, since this situation affects all levels of economic activity. Trade may be restricted to individuals of the same ethnic group; public infrastructure may have an ethnic bias; government expenditure may favor some ethnic groups, etc. The common element in all these mechanisms is the existence of an ethnic conflict which, through social and political channels, spreads to the economy. However, many empirical studies find no relationship between ethnic fractionalization, ethnic conflict, and civil wars. There are at least three alternative explanations for this. First, it could be the case that the classification of ethnic groups in the Atlas Nadorov Mira (henceforth ANM), source of the traditional index of ethnolinguistic fractionalization (ELF), is not properly constructed. Some authors have used other sources to construct datasets of ethnic groups for a large sample of countries. In general, the correlation between the index of fractionalization obtained using these alternative data sources is very high (over 0.8). Second, James D. Fearon (2003) has argued that it is important to measure the “ethnic distance” across groups in order to obtain indicators of cultural diversity. He measures these distances in terms of the proximity in a tree diagram of the families of languages of different countries. As in the case of alternative data sources, the correlation of the index of ethnic fractionalization, using these distances, with the original ELF index is very high, 0.82. * Montalvo: Department of Economics, Universitat Pompeu Fabra, C/Ramon Trias Fargas 25-27, Barcelona 08005 Spain, and Instituto Valenciano de Investigaciones Economicas (e-mail: montalvo@upf.es); Reynal-Querol: the World Bank, 1818 H Street, NW, Washington, DC 20433 (e-mail: mreynalquerol@worldbank.org). We are grateful for comments by Antonio Villar, Joan Esteban, Paul Collier, Tim Besley, and two anonymous referees. We thank the participants of seminars at the World Bank, Institut de la Mediterranea, Toulouse, Brown University, the European Economic Association Meetings, and the Winter Meetings of the Econometric Society. We would like to thank Sergio Kurlat, William Easterly, and Anke Hoeffler for sharing their data. Financial support from the BBVA Foundation and the Spanish Secretary of Science and Technology (SEC2003-04429) is kindly acknowledged. Jose G. Montalvo thanks the Public Services Group of the Research Department (DECRG) of the World Bank, where most of the revision of this paper was done, for their hospitality. The conclusions of this paper are not intended to represent the views of the World Bank, its executive directors, or the countries they represent. 1 Measured by the ELF index using the data of the Atlas Nadorov Mira. 2 Montalvo and Reynal-Querol (2000), Alesina et al. (2003), or Fearon (2003). 3 See also Francesco Caselli and W. John Coleman (2002).

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Ethnic diversity has an impact on many areas of social life, which has led to an extensive layer of research on relationships in this area. Many authors have studied in detail the impact of ethnic diversity on conflicts, instability, domestic politics, other various social and cultural aspects. At the same time, the relationship between ethnic fractionalization and economic parameters remains insufficiently studied, which leaves a wide field for relevant research, especially at the level of individual countries, since most of the work is devoted to cross-country comparative analysis of the relevant parameters. One of the most actual problems in the context of ethnic heterogeneity is its relationship with income inequality. This article presents the results of a study of the relationship between ethnic diversity, estimated on the basis of the ethno-linguistic fractionalization (ELF) index, and two indicators of income inequality — the Gini coefficient and the inter-decile income share ratio (S90/S10). The analysis of this relationship was carried out on the example of one country — Kazakhstan — by comparing the corresponding indicators for seventeen regions. The results of the analysis showed the presence of a stable and noticeable relationship, expressed in the growth of income inequality as ethnic diversity grows in the regions of the country. It was revealed that in the most ethnically homogeneous regions, income inequality indicators are minimal, while in the most ethnically diverse regions they are much higher. A significant correlation was also found between ethnic fractionalization and indicators of income inequality. The results obtained are generally correspond to the results of a number of cross-country studies, but in the case of Kazakhstan they are more distinct, which can be interpreted as confirmation of the relationship between ethnic diversity and income inequality in general.

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  • Cite Count Icon 134
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The study investigated the need for students of technology and vocational education to be adequately informed when making decision in occupational choice and job opportunities. The information required by students when making informed decision in occupational choice and job opportunities were self profile evaluation; information on available occupations and job opportunities; information on the recognizable risk in various occupations and job opportunities as well as socio-economic information. One hundred and twenty seven (127) NCE II (200 Level) students of Technical Education, Federal College of Education (Technical), Omoku, Nigeria constituted the study population. The study sample was sixty (60) students. The Arithmetic Mean was used to determine whether in the opinion of the students there was need for informed decision-making in occupational choice and job opportunity. The Median score was 2.50. The Chi-square(X2) statistical method was used to test whether there was a significant relationship between the opinion of the students on the need for informed decision –making, and occupational choice and job opportunity in technology and vocational education. The findings established that at probability level of 0.50, there was a significant relationship between students’ opinion on the need for informed decision-making and choice of occupation and job opportunities. DOI: 10.5901/jesr.2014.v4n1p453

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