The question of how ethnic diversity relates to economic development is important as multiethnic states move into the global market economy as in the case of ex-Yugoslavia. Understanding the role of ethnic relations in the workplace can help reveal how ethnic integration is experienced at the firm level. Macedonia's two main ethnic groups differ substantially on economic and social indicators. Our project examines relationships there among ethnic diversity, labour force integration and perceptions of nationalism vis-à-vis citizenship. Initial results indicate ethnically diverse communities and integrated workforces mitigate perceptions of nationalism and citizenship. Both the degree of ethnic diversification, as well as education, explain most of the variation observed. This has implications for the recent movement in Macedonia towards segregated education.