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Book cover: Frontiers of Economics and Globalization

Frontiers of Economics and Globalization

ISSN: 1574-8715
Series editor(s): Professor Hamid Beladi, Professor E. Kwan Choi

Subject Area: Economics

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Chapter 9 Ethnic Competition and Specialization


Document Information:
Title:Chapter 9 Ethnic Competition and Specialization
Author(s):Martin Kahanec
Volume:8 Editor(s): Gil S. Epstein, Ira N. Gang ISBN: 978-0-85724-153-5 eISBN: 978-0-85724-154-2
Citation:Martin Kahanec (2010), Chapter 9 Ethnic Competition and Specialization, in Gil S. Epstein, Ira N. Gang (ed.) Migration and Culture (Frontiers of Economics and Globalization, Volume 8), Emerald Group Publishing Limited, pp.205-229
DOI:10.1108/S1574-8715(2010)0000008015 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Article type:Chapter Item
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 chapter 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 chapter theoretically justifies a downward sloping labor demand curve and explains why some ethnic groups earn more than others, ethnic minorities underperforming or outperforming majorities.

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