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Are ethnic specialization and thus a downward sloping labor demand curve fundamental features of labor market competition between ethnic groups? In a general equilibrium model, this chapter argues that spillover effects in skill acquisition and social distances between ethnic groups engender equilibrium regimes of skill acquisition that differ in their implications for ethnic specialization. Specifically, fundamental relationships through which relative group sizes determine whether ethnic specialization arises and in what degree are established. Thus, this chapter theoretically justifies a downward sloping labor demand curve and explains why some ethnic groups earn more than others, ethnic minorities underperforming or outperforming majorities.

Enclave development is a common theme underlying much of the current thought regarding ethnic entrepreneurism, and particularly entrepreneurial behavior among recent immigrants. Historically, ethnic enclaves are described as having certain necessary characteristics (Portes, 1998; Portes & Bach, 1985; Waldinger et al., 1990), such as co-ethnic spatial concentration or agglomeration, a co-ethnic social and support network, a co-ethnic capital market, an intra-ethnic market trading structure (e.g. Dyer & Ross, 2000), and uniqueness of co-ethnic customer preferences and personalized services (e.g. Peterson & Roquebert, 1993). Current theory suggests that aspiring immigrant entrepreneurs and existing ethnic businesses alike can take advantage of the market and social cohesiveness offered by an established enclave, ultimately reducing the various transactions costs associated with doing intra-enclave business (Knack & Keefer, 1997). As Light (1998) argues, the key connection between social capital and ethnic entrepreneurship is the efficient use of ethnic resources to support the creation and survival of businesses in the community. While some characteristics of ethnic enclaves, such as co-ethnic agglomeration and social networks, have been extensively investigated by sociologists, regional economists, population ecologists, and entrepreneurship researchers, other enclave characteristics, such as the inter and intra-enclave market trading behaviors have been recognized, but less researched (Dyer & Ross, 2000; Galbraith et al., 2003).

This paper contributes to the analysis of the relationship between sociological discourse on ethnic relations and social changes produced by immigration in Italy. It is organized in three parts. The first part investigates the reasons that until recently prevented European and Italian academic debate from using the concept of ethnic minority to analyze international migration.

Culture is not new to the study of migration. It has lurked beneath the surface for some time, occasionally protruding openly into the discussion, usually under some pseudonym. The authors bring culture into the open. They are concerned with how culture manifests itself in the migration process for three groups of actors: the migrants, those remaining in the sending areas, and people already living in the recipient locations. The topics vary widely. What unites the authors is an understanding that though actors behave differently, within a group there are economically important shared beliefs (customs, values, attitudes, etc.), which we commonly refer to as culture. Culture and identity play a central role in our understanding of migration as an economic phenomenon; but what about them matters? Properly, we should be looking at the determinants of identity and the determinants of culture (prices and incomes, broadly defined). But this is not what is done. Usually identity and culture appear in economics articles as a black box. Here we try to begin to break open the black box.

Purpose – To present a new conceptual framework for understanding how perceptions of fairness shape the experience of respect in groups and its implications for individuals’ engagement in groups, their psychological well-being, and intergroup relations.

Design/methodology/approach – Research on fairness perceptions and respect emerge from different theoretical traditions including theories of justice, social identity theory, and social context and health. We review this body of work and present the dual pathway model of respect, developed to integrate the different lines of research into a single testable framework. Research testing the model's predictions is presented.

Findings – The dual pathway model posits that concerns about respect follow from the need for social inclusion and for status attainment. Fair treatment from group peers and authorities communicates the extent to which these needs are satisfied, and as such, perceptions of being liked (indicative of inclusion) and of being judged worthy (indicative of status attainment) independently and differentially predict social engagement and psychological well-being.

Originality/value – The dual pathway model provides a framework for integrating and extending existing research on the experience of respect in groups. The model highlights how the inclusion and status dimensions of respect differentially shape outcomes relevant to group functioning: social engagement and psychological well-being. Insights from the model address a broad array of challenges faced by organizations, including building commitment, managing diversity, and promoting health and well-being among its members.

We often observe minority ethnic groups at a disadvantage relative to the majority. Why is this and what can be done about it? Efforts made to assimilate, and time, are two elements working to bring the minority into line with the majority. A third element, the degree to which the majority welcomes the minority, also plays a role. We develop a simple theoretical model useful for examining the consequences for assimilation and harassment of growth in the minority population, time, and the role of political institutions. Over time, conflicts develop within the minority group as members exhibit different interests in assimilating and in maintaining their cultural identity. We discuss how this affects the minority's position over time and the influence of public policy.

In this chapter, we consider the interaction between local workers and migrants in the production process of a firm. Both local workers and migrants can invest effort in assimilation activities to increase the assimilation of the migrants into the firm and so increase their interaction and production activities. We consider the effect the relative size (in the firm) of each group and the cost of activities has on the assimilation process of the migrants.

Within immigrant society, different groups wish to help the migrants in different ways – immigrant societies are multilayered and multidimensional. We examine the situation where there exists a foundation that has resources and that wishes to help the migrants. To do so, they need migrant groups to invest effort in helping their country folk. Migrant groups compete against one another by helping their country folk and to win grants from the foundation. We develop a model that considers how such a competition affects the resources invested by the groups' supporters and how beneficial it is to immigrants. We consider two alternative rewards systems for supporters – absolute and relative ranking – in achieving their goals.

In the flowery days of the 1960s, many scholars supported the modernization paradigm, by which developments in the industrialized world would override ethnic and other divisive categories. Sociologists foresaw the spread of modernization and its prevalence over tribal identities; Marxists (semi or neo) pointed to the overlap of ethnicity and class in societies in which particular stigmatized ethnic groups, such as gypsies in Hungary, or Falashas³ (Beta Israel) in Ethiopia, were congregated in the lower social and economic echelons of society, according to occupational specialization and low income. According to the socialist paradigm, class ties would emerge as authentic ties binding like-minded people, and ethnicity would come to be seen as a mere facade for class.