TY - JOUR
T1 - Conflict and the ethnic structure of the marketplace
T2 - Evidence from Israel
AU - Zussman, Asaf
N1 - Publisher Copyright:
© 2016 Elsevier B.V.
PY - 2016/11/1
Y1 - 2016/11/1
N2 - How and why does ethnic conflict affect the ethnic structure of the marketplace? To answer these questions, this paper merges a unique administrative dataset covering the universe of transactions in the Israeli market for used cars during 1998–2010 with data on the intensity of the Israeli-Palestinian conflict. The analysis shows that violence reduces the number of transactions between Arab sellers and Jewish buyers while increasing the number of transactions between Arab sellers and Arab buyers; violence has no effect on the number of transactions involving Jewish sellers. I relate these findings to the economic literature studying the sources of discrimination.
AB - How and why does ethnic conflict affect the ethnic structure of the marketplace? To answer these questions, this paper merges a unique administrative dataset covering the universe of transactions in the Israeli market for used cars during 1998–2010 with data on the intensity of the Israeli-Palestinian conflict. The analysis shows that violence reduces the number of transactions between Arab sellers and Jewish buyers while increasing the number of transactions between Arab sellers and Arab buyers; violence has no effect on the number of transactions involving Jewish sellers. I relate these findings to the economic literature studying the sources of discrimination.
KW - Conflict
KW - Discrimination
KW - Ethnicity
KW - Israel
KW - Market for used cars
UR - http://www.scopus.com/inward/record.url?scp=84961233801&partnerID=8YFLogxK
U2 - 10.1016/j.euroecorev.2016.02.014
DO - 10.1016/j.euroecorev.2016.02.014
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AN - SCOPUS:84961233801
SN - 0014-2921
VL - 90
SP - 134
EP - 145
JO - European Economic Review
JF - European Economic Review
ER -