We often observe minority ethnic groups at a disadvantage relative to the majority. Why is this and what can be done about it? Efforts made to assimilate, and time, are two elements working to bring the minority into line with the majority. A third element, the degree to which the majority...

Distinguishing between short-run and long-run outcomes we provide new insight into the relationship between education and migration. We examine the specific link between the acquisition of high levels of human capital in the form of university education in Turkey and migration to Germany. We...

Distinguishing between short-run and long-run outcomes we provide new insight into the relationship between education and migration. We examine the specific link between the acquisition of high levels of human capital in the form of university education in Turkey and migration to Germany. We...

In an environment with extensive corruption where much of the population evades paying their full taxes due, we tackle the question of optimal taxation when constituencies with opposing objectives (the poor and the rich) push tax policy in different directions. We think in terms of a government...

This paper addresses the question: Why and where do immigrants cluster? We examine the relative importance and interaction of two alternative explanations of immigrant clustering: (1) network externalities and (2) herd behavior. We advance the theory by presenting a framework encompassing both...

Fundamentalist organizations and the terrorists they spawn do not arise of a vacuum. Combating terrorism requires understanding the principles of groups’ formation, development and growth. We use economic theory to explain the creation and development of fundamentalist groups. In this paper we...

Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that...

Hierarchical firms are enterprises with rigid internal job ladders. We examine the state enterprise as the prototypical hierarchical firm. In the state enterprise, promotion of employees through the internal hierarchy is determined by the workers’ allocation of time between rent seeking and...

In this paper we develop a theory of “Kosher Wars” under which Rabbis (certifying authorities) compete to enhance the level of Jewish observation of their congregations. The level of observance can be seen as the Rabbi’s rents. Our rent-seeking model explains the establishment...

Some immigrants try to keep their ethnicity hidden while others become ever deeply more mired in their home culture. We argue that among immigrants this struggle manifests itself in the ethnic goods they choose to consume. Different types of ethnic goods have vastly different effects on...