This paper argues that the internal organization of the firm and the growth process interact strongly to determine simultaneously the power of incentives within the firm and the growth rate. We show how agents within the firm can invest either by using their own human capital or by relying on...

Many developing countries have suffered under the personal rule of kleptocrats, who implement highly inefficient economic policies, expropriate the wealth of their citizens, and use the proceeds for their own glorification or consumption. We argue that the success of kleptocrats rests, in part,...

This paper presents an economic analysis of the intergenerational transmission of ethnic and religious traits through family socialization and marital segregation decisions. Frequency of intragroup marriage (homogamy), as well as socialization rates of religious and ethnic groups, depend on the...

Using the UK Fourth National Survey of Ethnic Minorities, we document differences in integration patterns between Muslims and non-Muslims. We find that Muslims integrate less and more slowly than non-Muslims. In terms of estimated probability of having a strong religious identity, a Muslim born...

This article provides a unified explanation for why blacks commit more crime, are located in poorer neighborhoods, and receive lower wages than whites. If everybody believes that blacks are more criminal than whites-even if there is no basis for this-then blacks are offered lower wages and, as a...

Most economists believe that the liberalization of international trade produces significant gains. Public opinion is much less optimistic, concerned that the current division of the gains from trade is unfair, unevenly distributed both across and within countries. To understand the position of...