The Long-Term Direct and External Effects of Jewish Expulsions in Nazi Germany

Abstract

This paper examines the long-term direct and spillover effects of large-scale human capital loss caused by the persecution of Jewish professionals in Nazi Germany. Using region-by-cohort variation in the percentage of the Jewish population as a quasi-experiment, we find that German children who were at school-age during the persecutions have fewer years of schooling on average in adulthood. Moreover, these children are less likely to finish high school and go to college. These results are robust after controlling for regional unemployment and income per capita, wartime destruction, Nazi and Communist Party support, compulsory schooling reform, migration, urbanization, and mortality. (JEL I21, I28, J24, J44, N34, N44, Z12)