Historical Antisemitism, Ethnic Specialization, and Financial Development

NBER Working Paper No. 23785

Issued in September 2017

NBER Program(s):Economics of Aging, Asset Pricing, Corporate Finance, Development of the American Economy, Economic Fluctuations and Growth, Labor Studies, Political Economy



For centuries, Jews in Europe have specialized in financial services. At the same time, they have been the victims of historical antisemitism on the part of the Christian majority. We find that present-day financial development is lower in German counties where historical antisemitism was higher, compared to otherwise similar counties. Households in counties with high historical antisemitism have similar savings rates but invest less in stocks, hold lower bank deposits, and are less likely to get a mortgage–but not to own a house–after controlling for wealth and a rich set of current and historical covariates. Present-day antisemitism and supply-side forces do not appear to fully explain the results. Present-day households in counties where historical antisemitism was higher express lower trust in finance, but have levels of generalized trust similar to other households.

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Document Object Identifier (DOI): 10.3386/w23785

Published: Francesco D’Acunto & Marcel Prokopczuk & Michael Weber, 2019. "Historical Antisemitism, Ethnic Specialization, and Financial Development," The Review of Economic Studies, vol 86(3), pages 1170-1206. citation courtesy of

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