Measuring Ethnic Identity and its Impact on Economic Behavior

Abstract

This article advocates for a new measure of the ethnic identity of migrants, models its determinants, and explores its explanatory power for economic performance. The ethnosizer, a measure of the intensity of a person's ethnic identity, is constructed from information on the following elements: language, media, ethnic self-identification, ethnic networks, and residency plans. The two-dimensional concept of the ethnosizer classifies migrants into four states: assimilation, integration, marginalization, and separation. The ethnosizer is found to mainly depend on pre-migration characteristics, and to be exogenous to economic activity. Ethnic identity significantly affects economic outcomes.