Wealthy migrant and Anglo families are "self-segregating" when they choose schools, with migrants shunning private schools in favour of the selective system and Anglo families doing the opposite, a leading researcher says.

These decisions were indicative of a wider problem across Sydney, with many schools more ethnically divided than the suburbs in which they were located, said University of Technology social scientist Christina Ho.

The trend was concerning because schools had a vital role to play in developing inter-cultural understanding in the community, Dr Ho said. "The increasing diversity of our communities is not reflected in our education system."

Pranay Jha attended The King's School and often felt like the odd one out at the majority Anglo school. Supplied

In NSW, 83 per cent of students in fully selective schools came from language backgrounds other than English (LBOTE), while more than half of the 99 schools with fewer than 10 per cent LBOTE students were private and in wealthy areas.

"We do have this self-segregation going on," Dr Ho said. "We do have a lot of wealthy migrants in this country who are living in the eastern suburbs and north shore, who could potentially afford to send their kids to private schools but they are not.

"[Migrant families] are flocking to the selective schools and really shunning these private schools. It ends up being quite a stark contrast."

Dr Ho said migrant families' choices might reflect less emphasis on the benefits offered by private schools, such as facilities and the old-boy/girl network, and more on academic outcomes.

They might also fear being a conspicuous minority in low-LBOTE private schools, Dr Ho said. "Ironically, it's the same logic that's happening in selective schools. A lot of Anglo families are saying, 'I would be a minority if I went to a selective school'.

"When schools no longer reflect their local communities, students miss out on opportunities to develop inter-cultural competencies and understanding."

Dr Ho's comments come as the Centre for Policy Development released her discussion paper, Ethnic Divides, which looked at disadvantages faced by students from non-English speaking backgrounds.

It found that the stereotype of the Asian high achiever was hiding a bigger picture of ethnic disadvantage in schools. The 125 schools with more than 90 per cent of LBOTE students were more likely to be disadvantaged and have below-average academic outcomes.

The paper also found schools were often more ethnically divided than the suburbs in which they were located. Those with a greater number of ethnic minorities than their neighbourhoods tended to be in the western suburbs.

"Schools that are less culturally diverse than their suburbs tend to be private, independent schools," Dr Ho wrote. For example, in the Kirribilli and North Sydney area, 28 per cent of residents spoke a language other than English at home.

Yet the seven private schools in the area had a median LBOTE figure of 11 per cent.

At The King's School in Parramatta, 41 per cent of students speak a language other than English at home. Nick Moir

The imbalances had been driven by policies that empower parents to shop for schools, rather than encouraging them to choose their local school, said Dr Ho.

"Australians do see schools as an important place to socialise [students] into a multicultural society ... and yet because of our policy of school choice, schools are increasingly not able to provide that kind of environment."

Pranay Jha, whose parents migrated from India, had the choice of going to a selective school or attending the King's School in North Parramatta on a scholarship. His parents chose the latter.

However, he often felt like the odd one out, and admitted to sometimes feeling cultural shame. "I was surrounded by white people, and so to socially succeed in the school you needed to play down your ethnicity a lot," he said.

"I can remember being racially abused while playing sport and taking it to my coach or the referee and nothing really happening as a consequence.

“Structures of racism in the school would still probably exist if there was more diversity, but if there were more people of colour you could find a greater sense of solidarity."

When Mr Jha graduated from the school in 2015, 31 per cent of students were from a language background other than English. By last year, that had risen to 41 per cent.

LBOTE includes anyone who speaks, or whose parents speak, a language other than English at home and can include everyone from new arrivals to second-generation migrants who were born in Australia.

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