Historical antisemitism, ethnic specialization, and financial development

D'Acunto, F., Prokopczuk, M. and Weber, M. (2019) Historical antisemitism, ethnic specialization, and financial development. Review of Economic Studies, 86 (3). pp. 1170-1206. ISSN 1467-937X doi: 10.1093/restud/rdy021

Abstract/Summary

Historically, European Jews have specialized in financial services while being the victims of antisemitism. We find that the present-day demand for finance is lower in German counties where historical antisemitism was higher, compared to otherwise similar counties. Households in counties with high historical antisemitism have similar saving rates but invest less in stocks, hold lower saving deposits, and are less likely to get a mortgage to finance homeownership after controlling for wealth and a rich set of current and historical covariates. Present-day antisemitism and supply-side forces do not fully explain the results. Households in counties where historical antisemitism was higher distrust the financial sector more—a potential cultural externality of historical antisemitism that reduces wealth accumulation in the long run.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/75714
Identification Number/DOI	10.1093/restud/rdy021
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Oxford University Press
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