In this chapter, we investigate the effects of vulnerability on income and employment in Bosnia and Herzegovina, Croatia, Montenegro, and Serbia using a unique 2004 UNDP dataset. Treating the collapse of the former Yugoslavia as a natural experiment, we compare three groups that have been...

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 chapter argues that spillover effects in skill acquisition and social distances between ethnic groups engender...