Social studies and anthropology, based on ethnographical research, take for granted the role of large populous groups in defining ethnicity. Self-definitions of the group, as well as definition by others, are interpreted as the central issues regarding large groups. The paper aims to argue for the key-role of elite groups in self-identification and ethnic creation. Small groups of elite, by defining their own “ethnicity” decided it for larger groups. This hypothesis will be tested and illustrated by test cases of ethnogenesis in Iron Age Palestine.