Ethnic identity development includes the identity formation in an individual's self-categorization in, and psychological attachment to, (an) ethnic group(s). It is closely related to but not exactly equivalent to racial identity development. Ethnic identity is characterized as part of one's overarching self-concept and identification. It is distinct from the development of ethnic group identities. Ethnic identity development is the process by which individuals come to understand and define their sense of belonging to an ethnic group. It typically begins in adolescence and is influenced by social, cultural, and psychological factors. Researchers have created different models to explain how this identity forms and evolves over time.With some few exceptions, ethnic and racial identity development is associated positively with good psychological outcomes, psychosocial outcomes (e.g., better self-beliefs, less depressive symptoms), academic outcomes (e.g., better engagement in school), and health outcomes (e.g., less risk of risky sexual behavior or drug use).

Development of ethnic identity begins during adolescence but is described as a process of the construction of identity over time due to a combination of experience and actions of the individual and includes gaining knowledge and understanding of in-group(s), as well as a sense of belonging to (an) ethnic group(s). Given the vastly different histories of various racial groups, particularly in the United States, that ethnic and racial identity development looks very different between different groups, especially when looking at minority (e.g., Black American) compared to majority (e.g., White American) group comparisons.

Ethnic identity is sometimes interchanged with, held distinct from, or considered as overlapping with racial, cultural and even national identities. This disagreement in the distinction (or lack thereof) between these concepts may originate from the incongruity of definitions of race and ethnicity, as well as the historic conceptualization of models and research surrounding ethnic and racial identity. Research on racial identity development emerged from the experiences of African Americans during the civil rights movement, however expanded over time to include the experiences of other racial groups. The concept of racial identity is often misunderstood and can have several meanings which are derived from biological dimensions and social dimensions. Race is socially understood to be derived from an individual's physical features, such as white or black skin tone. The social construction of racial identity can be referred as a sense of group or collective identity based on one's perception that they share a common heritage with a particular racial group. Racial identity is a surface-level manifestation based on what people look like yet has deep implications in how people are treated.

Recent research Recent literature has emphasized that ethnic identity development is a dynamic and non-linear process, especially during adolescence. Rather than occurring in fixed stages, identity formation is shaped by ongoing exploration, commitment, and personal narratives, all influenced by relationships with family, peers, and broader social contexts. According to Branje et al. (2021), identity development involves both stability and change, and adolescents actively construct their sense of self in response to life events and cultural experiences. The study also highlights that stronger ethnic identity development is associated with better mental health and psychosocial functioning.Branje, S., De Moor, E. L., Spitzer, J., & Becht, A. I. (2021). Dynamics of identity development in adolescence: A decade in review. Journal of Research on Adolescence, 31(4), 908–927. https://doi.org/10.1111/jora.12678

History Generally, group level processes of ethnic identity have been explored by social science disciplines, including sociology and anthropology. In contrast, ethnic identity research within psychology usually focuses on the individual and interpersonal processes. Within psychology, ethnic identity is typically studied by social, developmental and cross-cultural psychologists. Models of ethnic development emerged both social and developmental psychology, with different theoretical roots.

Roots in social psychology Ethnic identity emerged in social psychology out of social identity theory. Social identity theory posits that belonging to social groups (e.g. religious groups or occupational groups) serves an important basis for one's identity. Membership in a group(s), as well as one's value and emotional significance attached to this membership, is an important part of one's self-concept. One of the earliest statements of social identity was made by Kurt Lewin, who emphasized that individuals need a firm sense of group identification in order to maintain a sense of well-being. Social identity theory emphasizes a need to maintain a positive sense of self. Therefore, in respect to ethnic identity, this underscores affirmation to and salience of ethnic group membership(s). In light of this, affirmation of ethnicity has been proposed to be more salient among groups who have faced greater discrimination, in order to maintain self-esteem. There has also been research on family influences, such as cultural values of the family. Also, specific aspects of parenting, such as their racial socialization of youth, can contribute to the socialization of adolescents.

Relatedly, collective identity is an overarching framework for different types of identity development, emphasizing the multidimensionality of group membership. Part of collective identity includes positioning oneself psychologically in a group to which one shares some characteristic(s). This positioning does not require individuals to have direct contact with all members of the group. The collective identity framework has been related to ethnic identity development, particularly in recognizing the importance of personal identification of ethnicity through categorical membership. Collective identity also includes evaluation of one's category. This affective dimension is related to the importance of commitment and attachment toward one's ethnic group(s). A behavioral component of collective identity recognizes that individuals reflect group membership through individual actions, such as language usage, in respect to ethnic identity.

Roots in developmental psychology Identity becomes especially salient during adolescence as recognized by Erik Erikson's stage theory of psychosocial development. An individual faces a specific developmental crisis at each stage of development. In adolescence, identity search and development are critical tasks during what is termed the ‘Identity versus Role-confusion’ stage.

Achievement of this stage ultimately leads to a stable sense of self. The idea of an achieved identity includes reconciling identities imposed on oneself with one's need to assert control and seek out an identity that brings satisfaction, feelings of industry and competence. In contrast, identity confusion occurs when individuals fail to achieve a secure identity, and lack clarity about their role in life.

James Marcia elaborated on Erik Erikson's model to include identity formation in a variety of life domains. Marcia's focus of identity formation includes two processes which can be applied to ethnic identity development: an exploration of identity and a commitment. Marcia defines four identity statuses which combines the presence or absence of the processes of exploration and commitment: Identity diffusion (not engaged in exploration or commitment), identity foreclosure (a lack of exploration, yet committed), moratorium (process of exploration without having made a commitment), and identity achievement (exploration and commitment of identity).

Researchers believe and have frequently reported that older individuals are more likely to be in an achieved identity status than younger people. Evidence shows that increasing age and a wide range of life experiences helps individuals develop cognitive skills. This combination of age, life experiences, and improved cognitive skills helps adolescents and young adults find their authentic selves. Adolescents with strong commitments to their ethnic identities also tend to explore these identities more than their peers.

Factors Adolescence While children in early to middle childhood develop the ability to categorize themselves and others using racial and ethnic labels, it is largely during adolescence that ethnic and racial identity develops. Adriana J. Umaña-Taylor and colleagues write about the following concepts as playing key roles during this stage:

Cognitive milestones include: abstract thinking, introspection, metacognition, and further development of social-cognitive abilities.

Physiological changes include puberty and development of body image

Social and environmental context includes: family, peers, social demands and transitions, navigating an expanding world, and media

Ethnic and Racial Identity (ERI) components about process: Contestation Elaboration Negotiation Internalization of cultural values Collective self-verification

Ethnic and Racial Identity (ERI) components about content: Public regard Ideology Affect (affirmation, private regard) Salience Centrality Importance Understanding of common fate or destiny Identity self-denial Certainty

Suburbanization

Critical race theory has explored the development of suburban "whiteness" in the United States as representing the racialized and classless fantasy of a heterogeneous white population. This work stands in contrast with earlier studies of white flight that assume a broad or homogeneous concept of "white people" who suburbanize in the post World War II era. The culture of suburbanization in Los Angeles through the 40s, 50's and 60's was represented by the icons of popular culture that were often exclusionary and became hallmarks of a "culture of suburban whiteness".

There were some improvements for African-Americans during the era of New Deal reforms, but the housing policies of the Federal Housing Administration (FHA) and the Home Owners' Loan Corporation (HOLC) made it a practical certainty that nonwhites would not be able to own suburban homes. The HOLC tied its calculus of property values to racial demographics with the most racially homogeneous neighborhoods being given the highest ratings. Based on this, FHA loans were directed to the suburbs, making home ownership in the city out of reach for most residents. The FHA said that loans to support urban homeowners would not be sound investments because of the "presence of inharmonious racial or nationality groups". In a 1933 report the agency acknowledged some fluidity to the concept of "white identity":

If the entrance of a colored family into a white neighborhood causes a general exodus of white people it is reflected in property values. Except in the case of Negroes and Mexicans, however, these racial and national barriers disappear when the individuals of foreign nationality groups rise in the economic scale to conform to American standards of living...

Academic outcomes and cultural socialization Research also points to the role of schools in shaping ethnic identity and academic success. Del Toro and Wang (2021) found that school-based cultural socialization positively influenced African American adolescents' academic performance. Their longitudinal study showed that when students perceived schools as supportive of cultural expression, they developed stronger ethnic-racial identity commitment, which in turn predicted higher GPAs. Interestingly, identity exploration alone did not lead to better academic outcomes, suggesting that a stable sense of ethnic identity is especially beneficial.

Models for ethnic identity formation

Jean Phinney