Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34529 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
IZA Discussion Papers No. 3167
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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.
Subjects: 
Human capital
ethnic group
labor market
ethnic specialization
spillover effects
JEL: 
J15
Document Type: 
Working Paper

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