Ethnic Discrimination in Education: The Swiss Case

This paper investigates the role that discrimination plays in the educational marginalizationof foreign youth commonly observed in European countries with a long guestworkertradition. Economic theory offers two basic explanations for discrimination ofthis form: taste-based discrimination arising from personal prejudices and statisticaldiscrimination stemming from ability uncertainty. Which theory applies in reality hasimportant policy implications. If taste-based discrimination is the source of ethnic segregation,then measures to eliminate prejudice are required to promote integration;whereas if statistical discrimination is the cause, then better measures of ability areneeded. Using Switzerland as a case study, we provide evidence that statistical discriminationis the source of ethnic segregation in schooling. Further we find thatteachers generally do not grade foreign youth differently than native students. Thisresult runs counter to previous research which suggests that disadvantaged pupils aregraded more leniently.