We present a theory of ethnic conflict in which coalitions formed along ethnic lines competefor the economy’s resources. The role of ethnicity is to enforce coalition membership: inethnically homogeneous societies members of the losing coalition can defect to the winnersat low cost, and this...

We study cross-country differences in the aggregate production function whenskilled and unskilled labor are imperfect substitutes. We find that there is a skill biasin cross-country technology differences. Higher-income countries use skilled labormore efficiently than lower-income countries,...

We present a joint study of the U.S. structural transformation (thedecline of agriculture as the dominating sector) and regional convergence(of southern to northern average wages).We find empiricallythat most of the regional convergence is attributable to the structuraltransformation: the...