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Chapter 9 Ethnic Competition and Specialization

In: Migration and Culture

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  • Martin Kahanec

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.

Suggested Citation

  • Martin Kahanec, 2010. "Chapter 9 Ethnic Competition and Specialization," Frontiers of Economics and Globalization, in: Migration and Culture, pages 205-229, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(2010)0000008015
    DOI: 10.1108/S1574-8715(2010)0000008015
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