In Modern Hebrew, only three segmental markers are typically acknowledged as ethnically conditioned, and usage of these markers has significantly decreased in second and third generation speakers. Yet the sociolinguistic situation of diverging language backgrounds of first generation speakers, compounded with ethnic segregation in housing and the workforce, seems like a fertile ground for social identification from speech. We report two studies on prosodic variation in Modern Hebrew: a perception study and a "matched-pairs" corpus study. The results of the first illustrate that even in the absence of the known segmental markers, ethnicity perception of young native speakers may still diverge between two major ethnic identities, Mizrahi (Middle Eastern) and Ashkenazi (European). The main acoustic correlate was