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 Jewish population as a quasi-experiment, we find that on average German children who were of school age during the persecutions have fewer years of schooling in adulthood, and are less likely to finish high school or go to college. These results are robust after controlling for regional unemployment and income, wartime destruction, Nazi and Communist Party support, the compulsory schooling reform, migration, urbanization and mortality.
Year: 2013 HiCN Working Paper No. 154