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

  • Kahanec, Martin


    (Central European University)

  • Yuksel, Mutlu


    (Dalhousie University)

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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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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  1. 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.
  2. Amelie F. Constant & Klaus F. Zimmermann, 2008. "Measuring Ethnic Identity and its Impact on Economic Behavior," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 424-433, 04-05.
  3. Miguel, Edward & Roland, GĂ©rard, 2011. "The long-run impact of bombing Vietnam," Journal of Development Economics, Elsevier, vol. 96(1), pages 1-15, September.
  4. Joshua D. Angrist & Adriana Kugler, 2005. "Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia," NBER Working Papers 11219, National Bureau of Economic Research, Inc.
  5. Olga Shemyakina, 2006. "The Effect of Armed Conflict on Accumulation of Schooling: Results from Tajikistan," HiCN Working Papers 12, Households in Conflict Network.
  6. Mevlude Akbulut-Yuksel, 2014. "Children of War: The Long-Run Effects of Large-Scale Physical Destruction and Warfare on Children," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 634-662.
  7. Steven Brakman & Harry Garretsen & Marc Schramm, 2004. "The strategic bombing of German cities during World War II and its impact on city growth," Journal of Economic Geography, Oxford University Press, vol. 4(2), pages 201-218, April.
  8. 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.
  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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