Irena Grosfeld, Seyhun Orcan Sakalli, Ekaterina Zhuravskaya, 03 October 2019

It is commonly argued that political instability increases the likelihood of civil conflicts, while economic downturns can trigger civil conflict and aggravate ethnic violence. This column examines how political and economic factors interact to drive pogroms in an environment of widespread antisemitism, using data from the Russian Empire of the 19th and early 20th centuries. It finds that pogrom waves took place when and only when economic shocks coincided with political turmoil, and that occupational segregation between the Jews and the majority played an important role in triggering ethnic violence.  

Francesco D'Acunto, Marcel Prokopczuk, Michael Weber, 26 February 2015

Discrimination can be costly for both victims and perpetrators. This column uses the variation of historical Jewish persecution across German counties to proxy for localised distrust in financial markets. Persecution reduces the average stock market participation rate of households by 7.5%–12%. This striking effect is stable over time, across cohorts, and across education levels. The effect survives when comparing only geographically close counties. It suggests that the persecution of minorities may negatively affect societal wealth even far into the future through the channel of intergenerationally transmitted investment norms.

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