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Intergenerational Transfer of Human Capital under Post-War Distress: The Displaced and the Roma in the Former Yugoslavia

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Author Info

  • Kahanec, Martin

    () (Central European University)

  • Yuksel, Mutlu

    () (Dalhousie University)

Abstract

In this chapter, we investigate the effects of vulnerability on income and employment in Bosnia and Herzegovina, Croatia, Montenegro and Serbia using a unique 2004 UNDP dataset. Treating the collapse of the former Yugoslavia as a natural experiment, we compare three groups that have been differently affected by the wars and post-war distress: the majority as the benchmark, the ex-ante and ex-post vulnerable Roma people, and the ex-ante equal but ex-post vulnerable refugees and internally displaced people (RIDPs). Our findings reveal significant negative effects of vulnerability on income and employment. RIDPs seem to be about as negatively affected as Roma across the four states, which indicate that vulnerability inflicted by relatively recent displacement may have similar effects as vulnerability rooted deep in the past. When we look at education as one of the key determinants of socio-economic outcomes, both groups exhibit similarly substandard educational outcomes of children and significant inertia in intergenerational transfer of human capital. Our findings highlight the need for policies that not only tackle vulnerability as such, but address the spillover effects of current vulnerability on future educational attainment.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5108.

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Length: 40 pages
Date of creation: Aug 2010
Date of revision:
Publication status: published in: Gil Epstein and Ira Gang (eds.), Migration and Culture, Frontiers of Economics and Globalization, Vol. 8, Emerald Publishing, Bingley, 2010, 415-443
Handle: RePEc:iza:izadps:dp5108

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Related research

Keywords: integration; discrimination; internally displaced people; refugees; Roma; education; labor market; vulnerability;

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  1. Kondylis, Florence, 2010. "Conflict displacement and labor market outcomes in post-war Bosnia and Herzegovina," Journal of Development Economics, Elsevier, vol. 93(2), pages 235-248, November.
  2. Donald R. Davis & David E. Weinstein, 2002. "Bones, bombs and break points: The geography of economic activity," Discussion Papers 0102-02, Columbia University, Department of Economics.
  3. Amelie Constant & Klaus F. Zimmermann, 2007. "Measuring Ethnic Identity and Its Impact on Economic Behavior," SOEPpapers on Multidisciplinary Panel Data Research 47, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Akbulut-Yuksel, Mevlude, 2009. "Children of War: The Long-Run Effects of Large-Scale Physical Destruction and Warfare on Children," IZA Discussion Papers 4407, Institute for the Study of Labor (IZA).
  5. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2002. "The strategic bombing of German cities during World War II and its impact on city growth," Research Report 03C03, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  6. Niall O'Higgins & Andrey Ivanov, 2006. "Education and Employment Opportunities for the Roma," Comparative Economic Studies, Palgrave Macmillan, vol. 48(1), pages 6-19, March.
  7. Edward Miguel & Gerard Roland, 2006. "The Long Run Impact of Bombing Vietnam," NBER Working Papers 11954, National Bureau of Economic Research, Inc.
  8. Olga Shemyakina, 2006. "The Effect of Armed Conflict on Accumulation of Schooling: Results from Tajikistan," HiCN Working Papers 12, Households in Conflict Network.
  9. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
  10. Eik Leong Swee, 2009. "On War and Schooling Attainment: The Case of Bosnia and Herzegovina," HiCN Working Papers 57, Households in Conflict Network.
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