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Assimilation, Criminality and Ethnic Conflict

  • Dasgupta, Indraneel

    ()

    (Indian Statistical Institute)

  • Mukherjee, Diganta

    ()

    (Indian Statistical Institute)

We examine the consequences, of integrating large minorities into productivity-relevant majority ethno-linguistic norms, for distribution, ethnic conflict and crime. We develop a two-community model where such assimilation generates social gains by: (a) facilitating economic interaction, and (b) dampening religious or racial conflict over symbolic and normative contents of the public sphere. However, integration shifts the distribution of both material and symbolic goods against the minority. It also expands income inequality within the minority community. This incentivizes decentralized attempts to expropriate producers which, through cumulative causation, both immiserize and criminalize the minority. An underclass thus results, with disproportionate minority presence.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7924.

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Length: 30 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:iza:izadps:dp7924
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  1. JoseG. Montalvo & Marta Reynal-Querol, 2008. "Discrete Polarisation with an Application to the Determinants of Genocides," Economic Journal, Royal Economic Society, vol. 118(533), pages 1835-1865, November.
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  3. Desmet, Klaus & Ortuño-Ortín, Ignacio & Wacziarg, Romain, 2012. "The political economy of linguistic cleavages," Journal of Development Economics, Elsevier, vol. 97(2), pages 322-338.
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  13. Li, Qiang, 2013. "Language and urban labor market segmentation: Theory and evidence," Journal of Urban Economics, Elsevier, vol. 74(C), pages 27-46.
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  18. Dasgupta, Indraneel & Kanbur, Ravi, 2003. "Bridging Communal Divides: Separation, Patronage, Integration," Working Papers 127235, Cornell University, Department of Applied Economics and Management.
  19. István Kónya, 2005. "Minorities and majorities: a dynamic model of assimilation," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1431-1452, November.
  20. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
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