Ethnic Competition and Specialization

« Back to publications

Ethnic Competition and Specialization

Published on Sept. 12, 2007 in Books

Ethnic Competition and Specialization

Ethnic Competition and Specialization, in Gil S. Epstein and Ira N. Gang, (eds.), Frontiers of Economics and Globalization: Migration and Culture, Vol. 8, Bingley: Emerald Publishing (2010), 205–230.


Are ethnic specialization and thus a downward sloping labor demand curve fundamental features of labor market competition between ethnic groups? In a general equilibrium model, this paper argues that spillover effects in skill acquisition and social distances between ethnic groups engender equilibrium regimes of skill acquisition that differ in their implications for ethnic specialization. Specifically, fundamental relationships through which relative group sizes determine whether ethnic specialization arises and in what degree are established. Thus, this paper theoretically justifies a downward sloping labor demand curve and explains why some ethnic groups earn more than others, ethnic minorities underperforming or outperforming majorities.

Also as IZA Discussion Paper P 3167, 2007


Newsletter sign-up

By signing up, you agree to our Privacy Policy.