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Identity and Mobility: Historical Fractionalization, Parochial Institutions, and Occupational Choice in the American Midwest

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Abstract

This paper examines the role played by a specific identity, defined as the attachment to a hometown, in determining occupational choice and mobility. The analysis links competition between ethnic networks in the Midwest when it was first developing, and the in-group identity that emerged endogenously to support these networks, to institutional participation and occupational choice today. Individuals born in counties with greater ethnic fractionalization in 1860 are today -- 150 years later --(i) significantly more likely to participate in institutions such as churches and parochial schools that transmit identity from one generation to the next, and (ii) significantly less likely to select into mobile skilled occupations. The effect of historical fractionalization on participation in these socializing institutions actually grows stronger over the course of the twentieth century, emphasizing the idea that small differences in initial conditions can have large long-term effects on institutions and economic choices.

Suggested Citation

  • Nicholas Wilson & Kavian Munshi, 2010. "Identity and Mobility: Historical Fractionalization, Parochial Institutions, and Occupational Choice in the American Midwest," Center for Development Economics 2011-02, Department of Economics, Williams College.
  • Handle: RePEc:wil:wilcde:2011-02
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    Cited by:

    1. Pritha Dev & Blessing U. Mberu & Roland Pongou, 2016. "Ethnic Inequality: Theory and Evidence from Formal Education in Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 603-660.
    2. Dev, Pritha & Mberu, Blessing & Pongou, Roland, 2013. "Communitarianism, Oppositional Cultures, and Human Capital Contagion: Theory and Evidence from Formal versus Koranic Education," MPRA Paper 46234, University Library of Munich, Germany, revised 15 Apr 2013.
    3. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.

    More about this item

    Keywords

    Identity; Institutional persistence; Networks; Occupational choice; Mobil- ity;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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