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From Farmers to Merchants, Voluntary Conversions and Diaspora: A Human Capital Interpretation of Jewish History

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Author Info
Botticini, Maristella
Eckstein, Zvi

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Abstract

From the end of the second century C.E., Judaism enforced a religious norm requiring Jewish fathers to educate their sons. We present evidence supporting our thesis that this change in the religious and social norm had a major influence on Jewish economic and demographic history. First, the high individual and community cost of educating children in subsistence farming economies (2nd to 7th centuries) prompted voluntary conversions, which account for a large share of the reduction in the size of the Jewish population from 4.5 million to 1.2 million. Second, the Jewish farmers who invested in education, gained the comparative advantage and incentive to enter skilled occupations during the vast urbanization in the newly developed Muslim Empire (8th and 9th centuries) and they actually did select themselves into these occupations. Third, as merchants the Jews invested even more in education---a pre-condition for the extensive mailing network and common court system that endowed them with trading skills demanded all over the world. Fourth, the Jews generated a voluntary diaspora by migrating within the Muslim Empire, and later to western Europe where they were invited to settle as high skill intermediaries by local rulers. By 1200, the Jews were living in hundreds of towns from England and Spain in the West to China and India in the East. Fifth, the majority of world Jewry (about one million) lived in the Near East when the Mongol invasions in the 1250s brought this region back to a subsistence farming and pastoral economy in which many Jews found it difficult to enforce the religious norm regarding education, and hence, voluntarily converted, exactly as it had happened centuries earlier.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6006.

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Date of creation: Dec 2006
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Handle: RePEc:cpr:ceprdp:6006

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Related research
Keywords: human capital; Jewish economic and demographic history; migration; occupational choice; religion; social norms;

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Find related papers by JEL classification:
J1 - Labor and Demographic Economics - - Demographic Economics
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
N3 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth
O1 - Economic Development, Technological Change, and Growth - - Economic Development
Z12 - Other Special Topics - - Cultural Economics - - - Religion
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
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  1. Rapoport, Hillel & Weiss, Avi, 2002. "In-Group Cooperation in a Hostile Environment: An Economic Perspective on Some Aspects of Jewish Life in (Pre-Modern) Diaspora," IZA Discussion Papers 483, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Kremer, Michael, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 681-716, August. [Downloadable!] (restricted)
  3. Timur Kuran, 1997. "Islam and Underdevelopment: An Old Puzzle Revisited," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(1), pages 41-, March.
  4. Temin, Peter, 1997. "Is it Kosher to Talk about Culture?," The Journal of Economic History, Cambridge University Press, vol. 57(02), pages 267-287, June. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maristella Botticini & Zvi Eckstein, 2006. "Path Dependence and Occupations," Carlo Alberto Notebooks 3, Collegio Carlo Alberto. [Downloadable!]
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  2. Maria Saez-Marti & Fabrizio Zilibotti, 2008. "Preferences as Human Capital: Rational Choice Theories of Endogenous Preferences and Socioeconomic Changes," Finnish Economic Papers, Finnish Economic Association, vol. 21(2), pages 81-94, Autumn. [Downloadable!]
  3. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2008. "A Theory of Military Dictatorships," Carlo Alberto Notebooks 74, Collegio Carlo Alberto. [Downloadable!]
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  5. Murat Iyigun, 2006. "Ottoman Conquests and European Ecclesiastical Pluralism," IZA Discussion Papers 1973, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Paolo Ghirardato & Fabio Maccheroni & Massimo Marinacci, 2007. "Revealed Ambiguity and Its Consequences: Updating," Carlo Alberto Notebooks 44, Collegio Carlo Alberto. [Downloadable!]
  7. Esteban Jaimovich, 2007. "Sectoral Differentiation, Allocation of Talent, and Financial Development," Carlo Alberto Notebooks 59, Collegio Carlo Alberto, revised 2009. [Downloadable!]
  8. Iyigun, Murat, 2008. "Lessons from the Ottoman Harem (On Ethnicity, Religion and War)," IZA Discussion Papers 3556, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Matteo Triossi & Luis Corchón, 2006. "Implementation with State Dependent Feasible Sets and Preferences: A Renegotiation Approach," Carlo Alberto Notebooks 24, Collegio Carlo Alberto. [Downloadable!]
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  10. Gradstein, Mark, 2008. "Endogenous Reversals of Fortune," IZA Discussion Papers 3469, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Ales Cerný & Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2008. "On the Computation of Optimal Monotone Mean-Variance Portfolios via Truncated Quadratic Utility," Carlo Alberto Notebooks 79, Collegio Carlo Alberto. [Downloadable!]
  12. Itzhak Gilboa & Fabio Maccheroni & Massimo Marinacci & David Schmeidler, 2008. "Objective and Subjective Rationality in a Multiple Prior Model," Carlo Alberto Notebooks 73, Collegio Carlo Alberto, revised 2008. [Downloadable!]
  13. Michalopoulos, Stelios, 2008. "The Origins of Ethnolinguistic Diversity: Theory and Evidence," MPRA Paper 11531, University Library of Munich, Germany. [Downloadable!]
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  14. Becker, Sascha O. & Wößmann, Ludger, 2007. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," Discussion Papers in Economics 1366, University of Munich, Department of Economics. [Downloadable!]
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  15. Murat Iyigun, 2007. "Monotheism (From a Sociopolitical and Economic Perspective)," IZA Discussion Papers 3116, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Elisa Luciano & Elena Vigna, 2006. "Non mean reverting affne processes for stochastic mortality," Carlo Alberto Notebooks 30, Collegio Carlo Alberto. [Downloadable!]
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  17. Matteo Triossi, 2006. "Application Costs in Sequential Admission Mechanisms," Carlo Alberto Notebooks 23, Collegio Carlo Alberto. [Downloadable!]
  18. Russell Gerrard & Bjarne Højgaard & Elena Vigna, 2008. "Choosing the Optimal Annuitization Time Post Retirement," Carlo Alberto Notebooks 76, Collegio Carlo Alberto. [Downloadable!]
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