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 more immigrant peers of the same gender in school lead Danish managers to hire more immigrants later in life. We do not find any evidence that this relationship is driven by managers' educational outcomes or earnings, nor that the share of immigrants affects the managers' residential choices.

JEL Classification: I29, J15, J61, J71