This paper contributes to a deeper understanding of ethnic labelling practices by examining their interactional functions among secondary school pupils in Venlo, the Netherlands. Pupils with migration backgrounds often labelled themselves and others "Turk," "Moroccan," or "foreigner," and labelled others "Dutch." The paper highlights that ethnic labelling can be understood not only as identity construction, but also as interactional work. I build on membership categorization analysis (MCA), complemented by conversation analysis (CA), to analyse how pupils' use of ethnic labels evoked an expert role which altered interactants' power positions; and how, often, pupils engaged in jocular mockery with ethnic labels and in that way mitigated the effects of exclusionary and stigmatizing discourses about people with migration backgrounds. Finally, I argue that pupils' labelling practices had locally occasioned meanings and functions, but that they ultimately reflect wider-spread systems of categorization and marginalization of people with migration backgrounds in the Netherlands.