Back Economic factors have been one of the main determinants of anti-Semitism

Economic factors have been one of the main determinants of anti-Semitism

A study involving Luigi Pascali, professor at the UPF Department of Economics and Business, shows how after the Protestant Reformation, anti-Semitism grew in Protestant Germany in relation to the Catholic part, due to the greater exposure of Jews to competition in their role as moneylenders.

29.04.2019

Imatge inicial

The research analyses information about Jewish history from the various regions and more than 2,000 German towns and cities over nearly six centuries

Anti-Semitism remains a widespread social problem and is deeply rooted in history. Although there is extensive literature that has provided evidence on the social and political determinants of anti-Semitism, few studies have been conducted in the field of quantitative social sciences as regards its economic roots.

Research carried out by Luigi Pascali, professor at the Department of Economics and Business at UPF and of the Barcelona GSE, together with Sascha O.  Becker, professor of the Centre for Competitive Advantage in the Global Economy (CAGE) at the University of Warwick, assesses how economic factors and the division of work helped shape the geography of anti-Semitism.

The study aims to find out whether the presence or absence of complementarities in the labour market between the Jewish minority and the majority population explains the variation of anti-Semitic sentiments

The study, which is to be published soon in the American Economic Review entitled “Religion, Division of Labor and Conflict: Anti-Semitism in Germany over 600 Years”, aims to determine whether the presence or absence of complementarities in the labour market between the Jewish minority and the majority population explains the variation of anti-Semitic sentiment and of violence through time between the various German cities and regions.

“In our research, we showed that after the Protestant Reformation in 1517, anti-Semitism increased in Protestant Germany in comparison with Catholic Germany, and this increase was more accentuated in cities where Jews had already established themselves as moneylenders and in those where trade was already an important sector”, explains Luigi Pascali.

Data analysis to prove the increase in anti-Semitic attitudes

First, the study analyses information about Jewish history taken from the various regions and more than 2,000 German towns and cities across nearly six centuries (between 1300 and 1900): it is noted that pogroms and murders of Jews and expulsions of Jewish communities increased after the Protestant Reformation in Germany compared to Catholic Germany.

Secondly, data are collected from all known books printed in German cities between 1450 and 1600. It is found that after the Protestant Reformation, the absolute number and the proportion of books with anti-Semitic titles printed in Protestant Germany increased in relation to Catholic Germany.

Evolution of the position of the Jews as moneylenders in respect of the competition

According to the authors, during the first two centuries of the period analysed (1300-1900), Jews had a specific comparative advantage in the money sector due to the fact that the Catholic prohibition of usury prevented Catholics from lending interest, whereas Jews could. In addition, literacy and human capital rates were higher among the Jewish minority compared to the Catholic majority.

After the Reformation (1517), German territory was divided between Catholics and Protestants. In the Protestant area, usury was less restrictive and allowed (or tolerated) the lending of money by Protestants. Therefore, while in Catholic areas complementarities persisted between Catholics and Jews, in the Protestant areas, Jews lost their prerogatives regarding money.

“We interpret these findings as evidence that with the Reformation, Jews lost their comparative advantage in moneylending”.

“We interpret these findings as evidence that with the Reformation, Jews lost their comparative advantage in moneylending: this exposed them to competition with the Christian majority and caused an increase in ethnic and religious hostility, was greater in the most commercial cities”. “The geography of anti-Semitism is related to the geography of economic interactions between the Jewish minority and the Christian majority”, they stress.

Finally, the study authors wish to stress the importance that their research may have for policy makers: “Our results suggest that anti-Semitism and interethnic conflicts, broadly speaking, respond to economic incentives. This is an important finding in the light of contemporary ethnic conflicts around the world”.

Reference article : L. Pascali, S. Bechker (pròximament). "Religion, Division of Labor and Conflict: Anti-Semitism in Germany over 600 Years". American Economic Review

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