Ethnicity is the correct word here.

That said discrimination on the basis of ethnicity is still called Racism and believing in one’s ethnic superiority and right to oppress those of other ethnicities is still Supremacism, and growing up in an environment where you’re treated better and assumed you are an inherently better person with better morals because of your ethnicity increases the likelihood of you becoming a Racist and even a Supremacist, which is the point I’m making.