Research

PUBLICATIONS:

The Refugee's Dilemma: Evidence from Jewish Migration out of Nazi Germany, joint with Johannes Buggle, Thierry Mayer, and Mathias Thoenig, 2023, Quarterly Journal of Economics, 138(2): 12731345 [pdf] [appendix] [replication files]

We estimate the push and pull factors involved in the outmigration of Jews facing persecution in Nazi Germany from 1933 to 1941. Our empirical investigation makes use of a unique individual-level data set that records the migration history of the Jewish community in Germany over the period. Our analysis highlights new channels, specific to violent contexts, through which social networks affect the decision to flee. We estimate a structural model of migration where individuals base their migration decision on the observation of persecution and migration among their peers. Identification rests on exogenous variations in local push and pull factors across peers who live in different cities of residence. Then we perform various experiments of counterfactual history to quantify how migration restrictions in destination countries affected the fate of Jews. For example, removing work restrictions for refugees in the recipient countries after the Nuremberg Laws (1935) would have led to an increase in Jewish migration out of Germany in the range of 12% to 20% and a reduction in mortality due to prevented deportations in the range of 6% to 10%.

acreg: Arbitrary Correlation Regression, joint with Fabrizio Colella, Rafael Lalive, and Mathias Thoenig, 2023, Stata Journal, 23(1): 119–147 [pdf]

We present acreg, a new command that implements the arbitrary clustering correction of standard errors proposed in Colella et al. (2019, IZA discussion paper 12584). Arbitrary here refers to the way observational units are correlated with each other: we impose no restrictions so that our approach can be used with a wide range of data. The command accommodates both cross-sectional and panel databases and allows the estimation of ordinary least-squares and two-stage least-squares coefficients, correcting standard errors in three environments: in a spatial setting using units’ coordinates or distance between units, in a network setting starting from the adjacency matrix, and in a multiway clustering framework taking multiple clustering variables as input. Distance and time cutoffs can be specified by the user, and linear decays in time and space are also optional.

Middleman Minorities and Ethnic Conflict: Anti-Jewish Pogroms in the Russian Empire, joint with Irena Grosfeld and Ekaterina Zhuravskaya, 2020, Review of Economic Studies, 87(1): 289–342  [pdf] [appendix & replication files] [slides]

Using detailed panel data from the Pale of Settlement area between 1800 and 1927, we document that anti-Jewish pogroms — mob violence against the Jewish minority — broke out when economic shocks coincided with political turmoil. When this happened, pogroms primarily occurred in places where Jews dominated middleman occupations, i.e., moneylending and grain trading. This evidence is inconsistent with the scapegoating hypothesis, according to which Jews were blamed for all misfortunes of the majority. Instead, the evidence is consistent with the politico-economic mechanism, in which Jewish middlemen served as providers of insurance against economic shocks to peasants and urban grain buyers in a relationship based on repeated interactions. When economic shocks occurred in times of political stability, rolling over or forgiving debts was an equilibrium outcome because both sides valued their future relationship. In contrast, during political turmoil, debtors could not commit to paying in the future, and consequently, moneylenders and grain traders demanded immediate (re)payment. This led to ethnic violence, in which the break in the relationship between the majority and Jewish middlemen was the igniting factor. 

WORKING PAPERS

Independent Media, Propaganda, and Religiosity, joint with Irena Grosfeld, Etienne Madinier, and Ekaterina Zhuravskaya, CEPR DP16250,  [pdf], Conditionally Accepted, American Economic Journal: Applied Economics

Exploring a drastic change in media landscape in Poland, we show that mainstream media can significantly affect religious participation. After nationalist populist party PiS came to power in 2015, news on state and private independent TV diverged due to propaganda on state TV, resulting in a switch of some of its audience to independent TV. Municipalities with access to independent TV continued to follow a long-term secularization trend, while municipalities with access only to state TV experienced a reversal of this trend. An online experiment sheds light on the mechanisms underlying the effect of exposure to independent news on religiosity.

Inference with Arbitrary Clustering, joint with Fabrizio Colella, Rafael Lalive, and Mathias Thoenig, IZA DP No. 12584  [pdf] [acreg package] [most recent version]

Analyses of spatial or network data are now very common. Nevertheless, statistical inference is challenging since unobserved heterogeneity can be correlated across neighboring observational units. We develop an estimator for the variance-covariance matrix (VCV) of OLS and 2SLS that allows for arbitrary dependence of the errors across observations in space or network structure and across time periods. As a proof of concept, we conduct Monte Carlo simulations in a geospatial setting based on U.S. metropolitan areas. Tests based on our estimator of the VCV asymptotically correctly reject the null hypothesis, whereas conventional inference methods, e.g., those without clusters or with clusters based on administrative units, reject the null hypothesis too often. We also provide simulations in a network setting based on the IDEAS structure of coauthorship and real-life data on scientific performance. The Monte Carlo results again show that our estimator yields inference at the correct significance level even in moderately sized samples and that it dominates other commonly used approaches to inference in networks. We provide guidance to the applied researcher with respect to (i) whether or not to include potentially correlated regressors and (ii) the choice of cluster bandwidth. Finally, we provide a companion statistical package (acreg) enabling users to adjust the OLS and 2SLS coefficient’s standard errors to account for arbitrary dependence. 

Mass Refugee Inflow and Long-run Prosperity: Lessons from the Greek Population Resettlement, joint with Elie Murard, [pdf] (Previously distributed as IZA DP No. 11613 [pdf])

We investigate the long-term consequences of mass refugee inflow on economic development. After the Greco-Turkish war of 1919–1922, 1.2 million Greek Orthodox were forcibly resettled from Turkey to Greece, increasing the host population by more than 20% within a few months. To examine the long-term effects of this event, we build a novel geocoded dataset locating refugee settlements across the universe of more than four thousand Greek municipalities that existed in 1920. Using a battery of empirical strategies relying on different margins of spatial and temporal variation in the refugee inflow, we find that localities with a greater share of Greek refugees in 1923 display higher level of prosperity and industrialization sixty years after the event. These long-run benefits of refugees appear to be driven by the provision of new agricultural know-how and the transfer of technological knowledge in textile, which fostered growth through higher diversity in complementary skills. The economic gains of the resettlement were lower in places where refugees were clustered in separate enclaves and where their skills were less easily transferable due to local geographic conditions. 

Secularization and Religious Backlash: Evidence from Turkey [pdf] [Appendix]

How do people react to a public policy that targets a cultural identity? This paper examines the effects of a top-down secularization-of-education reform on education and religiosity outcomes in Turkey. After the secularization, residents of provinces with higher pre-secularization levels of religiosity were less likely to send their children to secular schools relative to others. I provide evidence consistent with the mechanism that pious parents avoided sending their children to secular schools in order to better transmit their religious identities. They forewent economic benefits of education to achieve this goal and started giving more frequently religious names compared to others after the secularization. Taken together, my findings suggest that education policies that target a cultural identity might result in a backlash and highlight the importance of schooling choices made by parents in transmitting their identity to their children.

WORK IN PROGRESS:

Refugees in the Mediterranean: Economic Consequences, joint with Stelios Michalopoulos, Elias Papaioannou, Nikos Benos, Stelios Karagiannis, and Elie Murard