International integration and social identity

This paper contributes to the literature incorporating social identity into international economics. We develop a theoretical framework for studying the interplay between international integration and identity politics, taking into account that both policies and identities are endogenous. We find that, in general, a union is more fragile when peripheral member countries have higher status than the politically dominant “Core” countries, as this leads in equilibrium to stronger national identification in the periphery and a lower willingness to compromise. Low-status countries are less likely to secede, even when between-country differences in optimal policies are large, and although equilibrium union policies impose significant economic hardship. Contrary to the anticipation of many union advocates, mutual solidarity is unlikely to emerge as a result of integration alone.</p

The Concept of Global Transformation Labs

Global Transformation Labs (GTLs) are intended to be arenas, where students, teachers, researchers and various societal partners come together to explore and experiment with new collaborative ways of addressing global challenges and contribute to green and just transitions. The GTLs are thought to be spaces for mutual learning and reflection and places where participants can engage as change-makers, taking initiative, testing ideas and developing innovative approaches to complex societal challenges. The aim is to enhance the global perspectives of all participants, strengthen their understanding of human, societal, and&nbsp;planetary predicaments and opportunities, build their capabilities to navigate, act and contribute both creatively and responsibly in a changing world, and to drive transformation.&nbsp; This white paper presents a generative vision and an initial conceptual framework as a basis for further exploration through critical and creative conversations and co-development by interested partners.&nbsp

Social Identity and Economic Policy

I review evidence that individuals associate themselves—or identify—with groups in two fundamental ways: ingroup bias and conformity to group norms. The evidence spans many spheres of economic activity, including consumption, production, hiring, promotion, education, cooperation, financial investments, and law enforcement. Group identities are not fixed, even when it comes to ethnic and religious identities. I argue that the choice of identity can be captured by a simple trade-off between gains from group status and costs to distance from the group. I outline a simple conceptual framework that captures the main empirical regularities and illustrate how it can be used to study the two-way interaction between economic policy and social identity. The analysis implies, e.g., that inequality and immigration of low-skilled workers can strengthen nationalism and reduce redistribution, and that changes in the economic environment can produce shifts in identification patterns that feed into trade policy. Finally, I discuss open theoretical questions and domains where the interaction between identity and economic activity is not well understood. This includes the provision of public services, the evolution of gender norms, and the use of identity to motivate workers.</jats:p

Conflict and the Persistence of Ethnic Bias

How persistent are the effects of conflict on bias toward co-ethnics? What are the channels of persistence? We employ a measure of ethnic bias derived from decisions made by Israeli Arab and Jewish judges to study the levels and determinants of bias during the 2000–2004 conflict and its aftermath (2007–2010). Despite the fall in violence, we find no evidence of a general attenuation in bias. Furthermore, bias remains positively associated with past intensity of violence in different localities. This persistence does not appear to be due to judges' personal exposure to violence but rather to different dynamics in afflicted areas. (JEL D74, J15, K41) </jats:p