Conflict and the ethnic structure of the marketplace: Evidence from Israel

Asaf Zussman

European Economic Review, 2016, vol. 90, issue C, 134-145

Abstract: 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.

Keywords: Conflict; Ethnicity; Discrimination; Market for used cars; Israel (search for similar items in EconPapers)
JEL-codes: J15 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:90:y:2016:i:c:p:134-145

DOI: 10.1016/j.euroecorev.2016.02.014

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