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.
Original language | English |
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Journal | Annals of Economics and Statistics |
Volume | 71-72 |
Issue number | 3 |
Publication status | Published - 2003 |
Externally published | Yes |