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Applied Economics, Econometrics & Public Policy (CAGE) Seminar - Stelios Michalopoulos (Brown)
Title: Uprooted: Human Capital and the Asia Minor Catastrophe (joint with Elias Papaioannou, Seyuhn Sakalli, Elie Murard)
Abstract: More than a century has passed since the abrupt exodus of 1.2 million Greek Orthodox from Anatolia and their arrival in Greece, a transformative event for the country’s social and demographic landscape. Today, one in three Greeks reports a refugee background. While its historical significance is well-documented, its short-, medium-, and long-term impact on human capital accumulation remains unexplored. How did forced displacement shape the educational trajectories of the uprooted and their offspring? Did refugees invest in portable skills to respond to uncertainty, or did they struggle to catch up with the autochthonous? To address these questions, we trace the educational investments of refugees and their descendants over the last 100 years, leveraging granular census data and a comprehensive mapping of both their origins in Anatolia and settlements in Greece. The analysis provides compelling support for the uprootedness hypothesis. Though initially lagging, refugees settling in the Greek countryside eventually surpassed nearby natives' educational attainment. Their university choices also diverged with refugees’ lineages favoring degrees transferable beyond the Greek labor market, such as engineering and medicine, and natives specializing in law and other fields with a strong home bias. Exploring additional mechanisms reveals the critical role of linguistic barriers and economic conditions at the destination, as opposed to origin and background characteristics. The widespread educational gains of refugees and their descendants over three generations offer some hope that the ongoing surge of forced displacement, despite its tragedy, if properly addressed by the international community, can be a backbone of economic resilience for the affected communities.