Advanced Search
MyIDEAS: Login

Minority Status and Investment: Evidence from Natural and Lab Experiments in Bosnia and Herzegovina1

Contents:

Author Info

  • Vera Mironova

    ()
    (University of Maryland)

  • Egor Lazarev

    ()
    (Columbia University)

Registered author(s):

    Abstract

    This study explores how minority status influences individual decisions about investment in a post-conflict society. The study is based on multiple sources of evidence from Bosnia and Herzegovina. First, we exploit an exogenous imposition of minority and majority positions by an asif random adjustment of an administrative boundary and analyze household and business surveys. Second, we run a “lab-in-the field” experiment. The analysis shows that both actual and experimentally induced minority statuses are associated with lower levels of investment. Evidence suggests the perception of discrimination by the government, and not actual discrimination, as the plausible cause of such behavior. Several implications follow: emergence and persistence of segregated ethnic businesses, underinvestment and a basis for horizontal inter-group inequality that could increase the probability of a conflict.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.hicn.org/wordpress/wp-content/uploads/2012/06/HiCN-WP-162.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 162.

    as in new window
    Length: 50 pages
    Date of creation: Dec 2013
    Date of revision:
    Handle: RePEc:hic:wpaper:162

    Contact details of provider:
    Web page: http://www.hicn.org

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Joan Esteban & Debraj Ray, 2009. "Linking Conflict to Inequality and Polarization," Working Papers 377, Barcelona Graduate School of Economics.
    2. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
    3. Habyarimana, James P. & Humphreys, Macartan & Posner, Daniel N. & Weinstein, Jeremy, 2006. "Why Does Ethnic Diversity Undermine Public Goods Provision? An Experimental Approach," IZA Discussion Papers 2272, Institute for the Study of Labor (IZA).
    4. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    5. Joan Esteban & Laura Mayoral & Debraj Ray, 2012. "Ethnicity and Conflict: An Empirical Study," American Economic Review, American Economic Association, vol. 102(4), pages 1310-42, June.
    6. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April.
    7. Miguel, Edward & Gugerty, Mary Kay, 2005. "Ethnic diversity, social sanctions, and public goods in Kenya," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2325-2368, December.
    8. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2007. "Returns to capital in microenterprises : evidence from a field experiment," Policy Research Working Paper Series 4230, The World Bank.
    9. Gary Charness & Ramón Cobo-Reyes & Natalia Jiménez, 2006. "An investment game with third-party intervention," ThE Papers 06/13, Department of Economic Theory and Economic History of the University of Granada..
    10. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital and Predict Financial Decisions," Working Papers 182, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    11. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
    12. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
    13. Maarten J. Voors & Eleonora E. M. Nillesen & Philip Verwimp & Erwin H. Bulte & Robert Lensink & Daan P. Van Soest, 2012. "Violent Conflict and Behavior: A Field Experiment in Burundi," American Economic Review, American Economic Association, vol. 102(2), pages 941-64, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hic:wpaper:162. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alia Aghajanian) or () The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address or () or ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.