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Conflict and the ethnic structure of the marketplace: Evidence from Israel

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  • Zussman, Asaf

Abstract

How and why does ethnic conflict affect the ethnic structure of the marketplace? To answer these questions, this paper merges a unique administrative dataset covering the universe of transactions in the Israeli market for used cars during 1998–2010 with data on the intensity of the Israeli-Palestinian conflict. The analysis shows that violence reduces the number of transactions between Arab sellers and Jewish buyers while increasing the number of transactions between Arab sellers and Arab buyers; violence has no effect on the number of transactions involving Jewish sellers. I relate these findings to the economic literature studying the sources of discrimination.

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  • Zussman, Asaf, 2016. "Conflict and the ethnic structure of the marketplace: Evidence from Israel," European Economic Review, Elsevier, vol. 90(C), pages 134-145.
    • Handle: RePEc:eee:eecrev:v:90:y:2016:i:c:p:134-145
    DOI: 10.1016/j.euroecorev.2016.02.014
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    References listed on IDEAS

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    Cited by:

    1. Gangadharan, Lata & Grossman, Philip J. & Molle, Mana Komai & Vecci, Joe, 2019. "Impact of social identity and inequality on antisocial behaviour," European Economic Review, Elsevier, vol. 119(C), pages 199-215.
    2. Che, Feng & Zhou, Yalin & Liu, Yipeng, 2022. "Social Quality, Knowledge Hiding, and Community Capacity: A Study on Multi-Ethnic Communities in Chinese Cities," Journal of Business Research, Elsevier, vol. 144(C), pages 1024-1038.

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    More about this item

    Keywords

    Conflict; Ethnicity; Discrimination; Market for used cars; Israel;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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