This article examines variation in the social position of mixed-race populations by exploiting county-level variation in the degree of occupational differentiation between blacks and mulattoes in the 1880 U.S. census. The role of the mixed-race category as either a "buffer class" or a status threat depended on the class composition of whites. Black/mulatto occupational differentiation was greatest where whites had high occupational prestige and thus little to fear from a mulatto group. Furthermore, differentiation increased the risk of lynching where whites had relatively low status and decreased the risk of lynching where whites had relatively high status.