It may depend on area, I know it was a LOT more accepted at my working class public primary school than my snooty private highschool.
I was just thinking the other day how immersed I was in racist jokes about asians as a kid and didn't really notice. (The ones about aborigines I noticed a bit more since there tended to be actual aborigines around to hear them, albeit not generally intended as a particular target)

I mean, people in highschool were still bigoted, just not as loudly and cheerfully. They were also all girls, so tended to be less loud in general.