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Endogenous discrimination, migration prospects and the protection of ethnic minorities

Frédéric Docquier () and Hillel Rapoport

Annals of Economics and Statistics, 2003, issue 71-72, 19-78

Abstract: We consider an ethnically-divided developing country, where education is the only investment outlet and the minority is subject to governmental discrimination. We endogenize ethnic discrimination in a political economy framework, and investigate how it is affected by migration prospects. We show that the possibility of emigration tends to protect the minority from excessive rent-extraction, but may paradoxically turn out to be a curse for its remaining members when migration costs are sufficiently low.

Date: 2003
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