From Farmers to Merchants: A Human Capital Interpretation of Jewish Economic History

Zvi Eckstein () and Maristella Botticini

No 3718, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Since the Middle Ages the Jews have been engaged primarily in urban, skilled occupations, such as crafts, trade, finance and medicine. This distinctive occupational selection occurred between the seventh and the ninth centuries in the Muslim Empire and spread to other locations. We argue that this transition was the outcome of the widespread literacy among Jews prompted by an educational reform in the first century CE. Based on the growing nexus between education and Judaism in the first half of the millennium, we build a model in which Jewish men choose education, occupation, religion and location. The model predicts that when urbanization expands (as it did in the Muslim Empire), Jews move to new cities due to their comparative advantage in urban, skilled occupations. Furthermore, before urbanization a proportion of Jewish farmers are predicted to convert to other religions. The predictions of the model regarding conversions, migrations and reduction in the size of the Jewish population are consistent with historical evidence from the first millennium provided by historians. Hence, our study presents evidence for the long-term economic implications of changes in social norms.

Keywords: Jewish economic history; Human capital; Religion; Social norms; Migration; Occupational choice; First millenium (search for similar items in EconPapers)
JEL-codes: J10 J20 N30 O10 (search for similar items in EconPapers)
Date: 2003-01
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: From Farmers to Merchants:A Human Capital Interpretation of Jewish Economic History (2005)
Working Paper: From Farmers to Merchants: A Human Capital Interpretation of Jewish Economic History (2003)
Working Paper: From Farmers to Merchants: A Human Capital Interpretation of Jewish Economic History (2002)
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