Thursday, May 26, 2005

An interesting column

Anyone who's talked to me for a while knows that I think self-selection is a powerful thing. It is illustrated very well in this Steven Landsburg column, Why Jews Don't Farm.

So, what's different about the Jews? First, Botticini and Eckstein explain why other groups didn't leave the land. The temptation was certainly there: Skilled urban jobs have always paid better than farming, and that's been true since the time of Christ. But those jobs require literacy, which requires education—and for hundreds of years, education was so expensive that it proved a poor investment despite those higher wages. (Botticini and Eckstein have data on ancient teachers' salaries to back this up.) So, rational economic calculus dictated that pretty much everyone should have stayed on the farms.

But the Jews (like everyone else) were beholden not just to economic rationalism, but also to the dictates of their religion. And the Jewish religion, unique among religions of the early Middle Ages, imposed an obligation to be literate. To be a good Jew you had to read the Torah four times a week at services: twice on the Sabbath, and once every Monday and Thursday morning. And to be a good Jewish parent you had to educate your children so that they could do the same.

The literacy obligation had two effects. First, it meant that Jews were uniquely qualified to enter higher-paying urban occupations. Of course, anyone else who wanted to could have gone to school and become a moneylender, but school was so expensive that it made no sense. Jews, who had to go to school for religious reasons, naturally sought to earn at least some return on their investment. Only many centuries later did education start to make sense economically, and by then the Jews had become well established in banking, trade, and so forth.

I have no particular point with any of the above, I just wanted to get it online before I forgot about the article.

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