The Impact of Childhood Inter-Ethnic Contact on Managers' Hiring Decisions

Abstract

This paper analyzes whether inter-ethnic contact in childhood affects the hiring behavior of managers. To identify the causal effect of exposure, we exploit quasi-random variation in the share of immigrant students across cohorts within Danish schools. Using administrative employer-employee data, we find that being exposed to more immigrant peers of the same gender in

school leads Danish managers to hire more immigrants later in life. Exploring a variety of mechanisms, we find evidence most consistent with a change in managers’ attitudes toward immigrants.

JEL Classification: I29, J15, J61, J71