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European governments are struggling with the biggest refugee crisis since World War II, but there exists little evidence regarding how the management of the asylum process affects the subsequent integration of refugees in the host country. We provide new causal evidence about how one central policy parameter, the length of time that refugees wait in limbo for a decision on their asylum claim, affects their subsequent economic integration. Exploiting exogenous variation in wait times and registry panel data covering refugees who applied in Switzerland between 1994 and 2004, we find that one additional year of waiting reduces the subsequent employment rate by 4 to 5 percentage points, a 16 to 23% drop compared to the average rate. This deleterious effect is remarkably stable across different subgroups of refugees stratified by gender, origin, age at arrival, and assigned language region, a pattern consistent with the idea that waiting in limbo dampens refugee employment through psychological discouragement, rather than a skill atrophy mechanism. Overall, our results suggest that marginally reducing the asylum waiting period can help reduce public expenditures and unlock the economic potential of refugees by increasing employment among this vulnerable population.

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Science Advances
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Jens Hainmueller
Duncan Lawrence
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When a Tunisian-born man drove a 19-ton rented truck into a crowd of revelers celebrating France’s national holiday in the Mediterranean town of Nice last week, killing 84 people and injuring hundreds more, it was a deadly new example of an old terrorist tactic of turning vehicles into weapons, according to Stanford experts.

French authorities identified the man behind the wheel as Mohamed Lahouaiej Bouhlel, a 31-year-old immigrant from Tunisia who had lived in France since around 2005 and had been working as a delivery driver. Police shot him dead on the scene.

Martha Crenshaw, a senior fellow at Stanford’s Center for International Security and Cooperation (CISAC), said the fact that Bouhlel already had a commercial driver’s license gave him easy access to his weapon of choice.

“It was just unfortunate that he was somebody who already drove big trucks,” said Crenshaw.

“He did not have to go do something special, like train for a pilot’s license in the way that the 911 hijackers did, in order to acquire the means to kill people.”

Vehicles as tools of terror

Crenshaw said there had been around 30 incidents worldwide since 1994 where terrorists used vehicles as their primary weapon in attacks on civilians (not including car and truck bombs where explosives were used). Crenshaw noted that not all those vehicle attacks caused casualties.

If you include assaults on police and military targets, there have been more than 155 attacks where a vehicle has been used as a weapon in the way the truck was used in Nice, with over 75 of those attacks occurring in just the last three years, according to data from the National Consortium for the Study of Terrorism and Responses to Terrorism (START).

However, the exceptionally high number of casualties puts the attack in Nice in a league of its own. Most of the vehicle attacks on police and military only result in one or two casualties at a checkpoint or other hard target.

Stanford terrorism expert and former U.S. Special Forces Colonel Joe Felter said he was concerned that the attack in Nice “lowered the threshold” for aspiring terrorists who would be motivated to carry out copycat attacks.

“This was a disturbingly effective attack,” said Felter, a senior research scholar at CISAC.

“The message for would-be terrorists is that you don’t have to become a bomb maker to successfully execute a mass casualty attack. With a driver’s license and a credit card you can weaponize a rental truck.”

A challenge for law enforcement

Former CISAC fellow Terrence Peterson said it would be particularly difficult for law enforcement agencies to prevent terrorists from gaining access to vehicles.

“The types of people who would show up on other lists…like the no-fly list, are not going to show up when they rent a car,” said Peterson.

“A car is such a mundane object. How do you control using an everyday object for a terrorist attack? It’s nearly impossible.”

Al Qaeda had previously advocated using pickup trucks to target civilians, in the “Open Source Jihad” section of its propaganda magazine “Inspire.”

“The idea is to use a pickup truck as a mowing machine, not to mow grass but mow down the enemies of Allah,” according to a translation on the Web site MEMRI Cyber and Jihad Lab, which tracks jihadist postings online.

The article also advised would-be terrorists to, “pick your location and timing carefully. Go for the most crowded locations. Narrower spots are also better because it gives less chance for the people to run away…Therefore, it is important to study your path of operation before hand.”

French prosecutors said that Bouhlel carried out surveillance of the Promenade des Anglais prior to his attack there, and that he conducted online research into the mass shootings in Orlando and Dallas.

Murky motivations

It is still unclear what motivated Bouhlel. He had a history of domestic violence, psychological problems and money troubles, according to media reports. Acquaintances said the divorced father of three was not an outwardly religious Muslim. He reportedly drank alcohol, used drugs, ate pork and had sexual encounters with other men, all of which are forbidden under strict interpretations of Islam.

However, French authorities have suggested that he may have undergone a rapid conversion to radical Islam. And a Web site affiliated with the terror group ISIS has claimed Bouhlel as “a soldier of the Islamic State.”

[[{"fid":"223450","view_mode":"crop_870xauto","fields":{"format":"crop_870xauto","field_file_image_description[und][0][value]":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","field_file_image_alt_text[und][0][value]":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","field_file_image_title_text[und][0][value]":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","field_credit[und][0][value]":"AFP/Getty Images","field_caption[und][0][value]":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","field_related_image_aspect[und][0][value]":"","thumbnails":"crop_870xauto"},"type":"media","attributes":{"alt":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","title":"A reproduction of the picture on the residence permit of Mohamed Lahouaiej Bouhlel, the man who rammed his truck into a crowd celebrating Bastille Day in Nice on July 14.","width":"870","style":"width: 250px; height: 362px; float: right; margin-left: 15px","class":"media-element file-crop-870xauto"}}]]“It's plausible that the message of ISIS resonated with him as a Muslim immigrant living on the fringes of society, which would be consistent with my research team’s finding that people who feel “culturally homeless” experience a lack of purpose in their lives, which, in turn, is associated with stronger support for fundamentalist groups and causes,” said Sarah Lyons-Padilla, a Stanford research scientist in the Department of Psychology’s Center for Social Psychological Answers to Real-World Questions who’s studying the marginalization of Muslim immigrants at risk for radicalization.

The apocalyptic ideology of jihadist groups like the Islamic State (also known as “Daesh”) could be particularly appealing to “petty criminals, psychologically deranged or otherwise lost souls” such as Bouhlel, said David Laitin, James T. Watkins IV and Elise V. Watkins professor of Political Science.

“Spurred by Salafist propaganda, these recruits can work privately, away from any institutional connection with Daesh, to cause horror,” Laitin said.

“And many police forces are out of touch with vulnerable populations and are slow to identify potential recruits.”

"Confrontation is unavoidable"

Regardless of Bouhlel’s motivation, his attack would likely bolster the anti-immigrant agenda of France’s far-right political parties such as the National Front, which advocate policies such as closing the borders, exiting the European Union and deporting bi-nationals with links to Islamist groups, said Cécile Alduy, associate professor of French and an affiliated faculty member with the Europe Center at the Freeman Spogli Institute for International Studies.

“The attacks will only strengthen the feeling that the political elites in power failed, and that the National Front “told us so” and are the only ones left to trust,” Alduy said.

Patrick Calvar, the head of France’s counter-terrorism intelligence agency DGSI, warned earlier this year that the recent series of terror attacks on French soil could trigger “inter-ethnic clashes” between far-right vigilante groups and Muslims living in France.

“One or two more terrorist attacks” and “the confrontation [between the two sides] is unavoidable,” said Calvar.

Alduy said she feared the shift in French public opinion could make Calvar’s prediction more likely.

“An opinion poll…in March 2015 put “sadness” as the primary feeling that respondents identified with following the Charlie Hebdo attacks,” Alduy said.

“After the November attacks, it was “anger”, with “hatred” following closely for over 60% of them. Now what will it be?”

 

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Police officers and rescue workers stand near the truck that Mohamed Lahouaiej Bouhlel drove into a crowd leaving a fireworks display in the French Riviera town of Nice on July 14, 2016, killing at least 84 people.
Police officers and rescue workers stand near the truck that Mohamed Lahouaiej Bouhlel drove into a crowd leaving a fireworks display in the French Riviera town of Nice on July 14, 2016, killing at least 84 people. | VALERY HACHE/AFP/Getty Images
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Andrew Moravcsik, Professor of Politics and International Affairs at Princeton University’s Woodrow Wilson School of Public and International Affairs and Director of the European Union Program at Princeton, spoke about the four major crises faced by Europe today and presented his arguments as to why they present less cause for concern than current discourse would suggest.

Andrew Moravcsik Professor of Politics and International Affairs at Princeton University’s Woodrow Wilson School of Public and International Affairs and Director of the European Union Program at Princeton Speaker Princeton University
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**This event has been cancelled**

 
With the backdrop of the Brexit vote in the UK, Nick Clegg will explore the factors behind the rise of the politics of identity, populism and nationalism in the UK, the US and around the world. Drawing on his personal experiences in politics and government, and unique insights on the European debate, he asks how liberals and those who believe in the politics of reason and moderation can rise to the new economic and social challenges of the 21st century.
 
 

[[{"fid":"223705","view_mode":"crop_870xauto","fields":{"format":"crop_870xauto","field_file_image_description[und][0][value]":"Image of Nick Clegg, MP ","field_file_image_alt_text[und][0][value]":"Image of Nick Clegg, MP ","field_file_image_title_text[und][0][value]":"Image of Nick Clegg, MP ","field_credit[und][0][value]":"","field_caption[und][0][value]":"","field_related_image_aspect[und][0][value]":"","thumbnails":"crop_870xauto"},"type":"media","attributes":{"alt":"Image of Nick Clegg, MP ","title":"Image of Nick Clegg, MP ","width":"870","style":"width: 150px; height: 197px; float: left; margin-right: 15px; margin-top: 8px;","class":"media-element file-crop-870xauto"}}]]Nick Clegg MP is a Liberal Democrat politician who served as Deputy Prime Minister in Britain’s first post war Coalition Government from 2010 to 2015 and as Leader of the Liberal Democrats from 2007 to 2015. He is the Member of Parliament for Sheffield Hallam, where he was first elected in 2005, and was previously a Member of the European Parliament.

Nick Clegg led his party into Government for the first time in its modern history in a coalition with the Conservatives. As Deputy Prime Minister, Nick Clegg occupied the second highest office in the country at a time when the United Kingdom was recovering from a deep recession following the banking crisis of 2008. Despite the hugely controversial decisions needed to restore stability to the public finances, Nick Clegg successfully maintained his party’s support for a full five-year term of office.

During that time, he was at the heart of decisions surrounding the conflict in Libya, new anti-terrorism measures, the referenda on electoral reform and Scottish independence, and extensive reforms to the education, health and pensions systems. He was particularly associated with landmark changes to the funding of schools, early years education and the treatment of mental health within the NHS. During the coalition years he also established himself as the highest profile pro-European voice in British politics and is well known and respected in capitals across the continent.

He remains an outspoken advocate of civil liberties and centre ground politics, of radical measures to boost social mobility, and of an internationalist approach to world affairs. Following the UK referendum on EU membership in June 2016, Nick has returned to the Liberal Democrat front bench as the party’s European Union spokesperson in order to hold the Government to account over its plans for Brexit.

 
Nick Clegg, Member of Parliament and Former Deputy Prime Minister of the UK Speaker
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Globalization has led to new forms, and dynamics, of migration and mobility. What are the consequences of these changes for the processes of reception, settlement and social integration, for social cohesion, institutional practices and policies? The essays collected in this volume discuss these issues with reference to recent research on migration and mobility in Europe, the US, North and East Africa and South and Southeast Asia. The twenty authors are leading migration researcher from different academic fields such as sociology, geography, political science and cultural studies.

This research was originally presented at the Migration and Integration: Global and Local Dimensions conference, sponsored by The Europe Center and co-sponsored by the University of Vienna, the Walter H. Shorenstein Asia-Pacific Research Center, and the Center for International Security and Cooperation.

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As the UN estimates the total number of displaced persons globally at 65 million people, TEC affiliate Roland Hsu argues that European countries in particular must think of what the long term flow of refugees from the Maghreb and sub-Saharan Africa means for the future.

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A British exit from the European Union would slow economic growth, reduce Europe's impact in world politics, and strengthen regimes such as Russia's that prefer a weaker, less united Europe, Stanford expert Christophe Crombez says.

The United Kingdom would lose more than it would gain if it left the European Union, a Stanford scholar said.

So would other European nations, and the real winners would be countries that seek to divide European unity, said Christophe Crombez, a consulting professor in Stanford’s Europe Center in the Freeman Spogli Institute for International Studies.

Britain is holding a referendum on June 23 to decide whether the country should leave or remain in the European Union.

“It would bring but an illusion of sovereignty,” said Crombez, who studies European Union politics, parliamentary systems, political economy and economic analysis of political institutions. He is an economist from Belgium.

The Stanford News Service recently interviewed Crombez on the upcoming vote, known as “Brexit.”

What is Brexit?

The term Brexit refers to the United Kingdom’s withdrawal from the European Union. Article 50 of the Treaty on European Union allows member states to withdraw.

What are the arguments for and against Brexit?

The campaign for the UK to leave the EU uses the following main arguments: leaving would save UK taxpayers money, since the UK is a net contributor to the EU budget; the UK would no longer have to comply with EU laws it does not want, whereas currently it can be outvoted in EU institutions and forced to adopt laws it opposes; and it would allow the UK to better control migration, whereas EU citizens are currently free to move and work throughout the EU.

These three arguments can easily be refuted, however. The UK does indeed contribute to the EU budget, but the benefits it derives from being part of the EU market far outweigh the budgetary contributions. Moreover, (if Britain were to withdraw) the EU would require the UK to pay into its budget, if it wants to remain part of the EU’s internal market, as it has done with Switzerland and Norway.

Also, about half of UK exports are destined for the EU. If the UK were to leave, it would no doubt want to continue to trade with the EU. UK products would have to conform to EU rules for them to be sold in the EU. UK companies that want to export to the EU would thus continue to comply with EU rules. The difference would be that the UK would no longer be involved in setting those EU rules. Post-Brexit, the rules would thus be less to the UK’s liking than prior to it, and UK companies would comply to these less advantageous rules.

Finally, the EU would impose requirements on immigration and free movement of people on the UK in exchange for free trade with the EU, as it has with other countries in similar situations, such as Norway and Switzerland. Moreover, member states may no longer feel inclined to stop refugees from moving on to the UK if the UK were to leave, which may lead to higher rather than lower immigration.

In addition to these arguments, the Britain Stronger in Europe campaign (which supports the UK remaining in the EU) argues that Britain carries more weight in world politics as part of the EU than on its own, in trade negotiations as well as on security issues, and that a united Europe is better at dealing with (Russian President Vladimir) Putin and other authoritarian rulers, terrorist threats and international crime.

What do you think is the best decision for the United Kingdom to make on this vote?

I see no advantages to leaving the EU. It would bring but an illusion of sovereignty – consider the points above. The vote would have a negative impact on growth in the UK and the rest of the EU and, in fact, the world, and it would weaken the UK, the EU and the West in world politics.

What happens economically to Britain if the country leaves the European Union?

Trade and hence gross domestic product would be negatively affected, especially in the short term. Uncertainty would reduce investment and trade. The UK and the EU would be consumed with the negotiations on the break-up for years. This would prevent both the UK and EU from tackling more important economic and security issues. In the long term, the economy would readjust, but the result would be suboptimal.

What happens to the EU if Britain leaves?

The EU is less dependent on trade with the UK than vice versa. There would be an economic impact, but it would be less substantial. The effect would be more significant for a few countries that trade more with the UK, such as Ireland, Belgium and the Netherlands.

Brexit would, however, deliver a major blow to the idea of European unification. It would weaken the EU impact in world politics and strengthen such rulers as Putin and (Turkish President Recep Tayyip) Erdogan in their dealings with the EU.

Could a British exit open up a Pandora’s Box of other EU countries exiting or spark other regional independence movements, like  Catalonia?

That is quite possible. A number of other countries may want to hold referendums on the EU. Moreover, Brexit is likely to lead to a break-up of the UK. Scotland would likely hold another referendum and decide to leave the UK in order to stay in the EU. The same may be true for Northern Ireland in the long run. Scottish secession may then give other EU regions, such as Catalonia, further incentives to secede.

 
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Deborah R. Hensler is the Judge John W. Ford Professor of Dispute Resolution and Associate Dean for Graduate Studies Emerita at Stanford Law School, where she teaches courses on complex and transnational litigation, the legal profession, and empirical research methods. She co-founded the Law and Policy Laboratory at the law school with Prof. Paul Brest (emeritus). She is a member of the RAND Institute Civil Justice Board of Overseers and the Berkeley Law Civil Justice Initiative Advisory Board. From 2000-2005 she was the director of the Stanford Center on Conflict and Negotiation.

Prof. Hensler has written extensively on mass claims and class actions and is the lead author of Class Actions in Context: How Economics, Politics and Culture Shape Collective Litigation (2016) and Class Action Dilemmas: Pursuing Public Goals for Private Gain (2000) and the co-editor of The Globalization of Class Actions (2009). Prof. Hensler has taught classes on comparative class actions and empirical research methods at the University of Melbourne (Australia) and Catolica Universidade (Lisboa) and held a personal chair in Empirical Legal Studies on Mass Claims at Tilburg University (Netherlands) from 2011-2017. In 2014 she was awarded an honorary doctorate in law by Leuphana University (Germany). Prior to joining the Stanford faculty, Prof. Hensler was Director of the RAND Institute for Civil Justice (ICJ). She is a member of the American Academy of Arts & Sciences and the American Academy of Political and Social Sciences. Prof. Hensler received her A.B. in political science summa cum laude from Hunter College and her Ph.D. in political science from the Massachusetts Institute of Technology.

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Event Recap: Networks of European Enlightenment

Networks of European EnlightenmentConventional wisdom suggests that there were multiple enlightenments, each of which was distinctive and national in nature. Yet did the "Scottish Enlightenment," for instance, truly develop apart from the "German Enlightenment"? At the end of April, Stanford University hosted the "Networks of European Enlightenment" conference, which brought together leading scholars studying the role of transnational networks and communication in spreading knowledge throughout the enlightenment. The works presented at this conference suggest an alternative to the conventional wisdom: there was significant communication between enlightenment thinkers, resulting in a diffusion of knowledge throughout Europe.

Over the course of the conference, participants presented work ranging from theoretical and empirical approaches to studying historical networks, to the role of particular individuals and locales in the diffusion of enlightenment thought, to the ways in which religious and epistemic communities facilitated this diffusion of knowledge. The participants in this conference included scholars from Stanford University, Carnegie Mellon University, Princeton University, Queen Mary University of London, the University of Cambridge, the University of Helsinki, University of Nice Sophia-Antipolis, the University of Oxford, the University of Vienna, and Yale University.

The Networks of European Enlightenment conference was convened by Dan Edelstein, who is the William H. Bonsall Professor of French and Chair of the Division of Literatures, Cultures, and Languages and a TEC faculty affiliate. Dan earned his Ph.D. in French from the University of Pennsylvania in 2004 and joined the faculty at Stanford in that same year. His research interests lie at the nexus of literature, history, political theory, and digital humanities and his work typically focuses on eighteenth-century France.

The Networks of European Enlightenment conference was co-sponsored by The Europe Center, Stanford Humanities Center, the French Culture Workshop, the France-Stanford Center, and the Division of Literatures, Cultures, and Languages.


Featured Faculty Research: Amir Eshel

We would like to introduce you to some of The Europe Center’s faculty affiliates and the projects on which they are working. Our featured faculty member this month is Amir Eshel, who is the Edward Clark Crossett Professor of Humanistic Studies, Professor of German Studies and Comparative Literature, and former Director of The Europe Center.

Amir EshelAmir earned his Ph.D. in German Literature from Hamburg University in 1998 and joined the faculty at Stanford that same year. In his research, Amir is interested in how literary and cultural portrayals of modernity are used as commentary on contemporary philosophical, political, and ethical questions. In his current project, The Contemporary, which is supported in part by The Europe Center, Amir and his colleagues examine the cultural and political portrayals and uses of defining moments of the twentieth century, such as 1945, 1973, 1989, and 2001. This project is both interdisciplinary and global in scope and seeks to not only understand how these pivotal moments are portrayed and used, but also why and how some moments become important cultural reference points, while others do not. Throughout this academic year, The Contemporary has hosted numerous events engaging scholars from across the United States and Europe, including speakers from Uppsala University in Sweden, Goethe University in Germany, and the University of Antwerp in Belgium, among others. For more information about The Contemporary, please visit the project's website.


Featured Graduate Student Research: Suddhaseel Sen

We would like to introduce you to some of the graduate students that we support and the projects on which they are working. Our featured graduate student this month is Suddhaseel Sen (Musicology). Suddhaseel is a Ph.D. candidate in the Department of Music at Stanford University. Prior to beginning his doctoral studies at Stanford, Suddhaseel arranged Indian music for Western ensembles in India and Canada, in addition to doing academic research in English literature.

Suddhaseel SenSuddhaseel is a musicologist who is interested in Indian music and the orchestral, chamber, and operatic repertoires of the nineteenth and early-twentieth centuries. Supported in part by The Europe Center, Suddhaseel spent summer 2015 conducting fieldwork for his dissertation, Intimate Strangers: Cross-Cultural Exchanges between Indian and Western Musicians 1880-1940. During his fieldwork, Suddhaseel spent time in the archives of the French National Library (Bibliothèque nationale de France), examining letters and writings by French composers known to have visited India and incorporated Indian themes and musical elements in their compositions. From this research, he discovered that French composers came into greater direct contact with the music of the Maghreb, on the one hand, and the music of Southeast Asia, on the other, as a result of which the musical traditions from these non-Western regions were more influential than Indian or South Asian music in France at the beginning of the twentieth century. Since completing his fieldwork in France, Suddhaseel has conducted further research in London and is currently located at Presidency University in Kolkata, India. Suddhaseel is continuing to work on his dissertation, which he hopes to defend in the 2016-2017 academic year.

For more information about The Europe Center's Graduate Student Grant program, please visit our website.


Spring 2016 Graduate Student Grant Competition Winners Announced

Please join us in congratulating the winners of The Europe Center Spring 2016 Graduate Student Grant Competition:

  • Lindsay DerAnthropology, "Animal Symbolism and Inequality at the Origins of Agriculture."
  • Jane EsbergPolitical Science, "Strategies of Repression: Killings, Courts, and Censorship in Military Dictatorships."
  • Andre FischerGerman Studies, "Myth in German Postwar Literature, Film, and Art."
  • Nicole GounalisItalian, "From Futurism to Neorealism: Art, Politics, and Civil Society in Italy, 1909-1959."
  • Benjamin HeinHistory, "Gateway to the Americas: ArcGIS and the Spatial History of Frankfurt's Financial Hinterland."
  • Torin JonesCultural Anthropology, "Reluctant Integration: African Migrants and the New Sicilian Imagination."
  • Nicholas LevyHistory, "Rust Proof: Industrial Development and Urban Life in the Socialist 1970s."
  • Lachlan McNameePolitical Science, "Sowing the Seeds of Conflict: The Long-Term Political Effects of the Irish Plantation Scheme."
  • Fayola NeelyGerman Studies, "Metalinguistic Awareness in the Acquisition of German as a Third Language: The role of L2 Proficiency."
  • Jessi PiggottTheater and Performance Studies, "Political Street Theater: A Comparative History of Agitprop and Contemporary Art Activism."
  • Jens PohlmannGerman Studies, "Capitalizing on the Avant-Garde? An Analysis of Adversarial Author's Marketing Strategies in the Second Half of the 20th Century."
  • Justin TackettEnglish, "Listening Between the Lines: Sound Technology and Poetry, 1850-1930."
  • Michael WebbEconomics, "Skill-Biased Technical Change in the UK Manufacturing Sector: Does It Explain Inequality?"

Please visit our website for more information about our Graduate Student Grant program.


The Europe Center-Alliance of Liberals and Democrats for Europe Exchange Program

Over the past month, The Europe Center has welcomed our first two visitors from the Alliance of Liberals and Democrats for Europe (ALDE) as part of an exchange program agreement set last year. Both visitors are senior policy advisors - one focused on trade and the other on the budget. While at Stanford, they interacted with faculty and students to discuss the critical issues facing Europe and examine solutions for them. The other part of the exchange agreement, the Summer Internship Program with the ALDE Group, was implemented last June. Selected Stanford undergraduate interns work on policy related research projects while also learning about the legislative work of the European Parliament.

For more information about The Europe Center's Undergraduate Internship Program in Europe, please visit our website.

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Stanford scholar Kenneth Scheve says history shows that mass mobilizations and changing tax fairness norms were key factors behind higher tax rates for the wealthy based on the premise that if labor is conscripted, the wealthy should pay their share, too.

U.S. and European societies tax the rich at higher rates when people believe that the wealthy have unfair privileges due to their economic status, a Stanford professor said.

Kenneth Scheve, a professor of political science and senior fellow at the Freeman Spogli Institute for International Studies, recently published a book, Taxing the Rich: A History of Fiscal Fairness in the United States and Europe, with co-author David Stasavage, a New York University political scientist.

Scheve studies international and comparative political economy and comparative political behavior. The Stanford News Service interviewed him about the issue of taxes, the wealthy and inequality.

What are the historical origins behind the decisions for countries to impose high taxes on the rich?

The real watershed for taxing the rich came in 1914.  Before that time, even among countries who adopted income taxes, the rates on high earners never exceeded 10 percent. Most countries had some sort of inheritance tax, but rates were never above 15 percent. Among the countries that mass-mobilized for World War I, this changed dramatically with countries adopting top income tax rates that exceeded 70 percent during and immediately after the war. These increases were repeated during World War II with top rates in some countries exceeding 90 percent. We show in the book that these decisions had more to do with changing beliefs about tax fairness and preserving equal sacrifice in the war effort than simply that the wars were expensive. It was not the most financially desperate countries that taxed the rich the most. Democratic countries for which equality fairness norms were the strongest tended to respond to mass mobilization with higher taxes on the rich much more so than non-democracies.

What does your book debunk – what is its most surprising finding?

The two most commonly held ideas about when and why countries tax the rich are when they democratize and when inequality is high. We find surprisingly little evidence for either one of these ideas. The latter finding is particularly important for understanding what’s happening today in countries like the United States that have high and rising economic inequality. A common question is, “Why hasn’t the political system responded with higher taxes on the rich?” In sorting out which answers to this question are compelling, it is critical to understand that this lack of response is not unusual historically, and so answers that emphasize specific purported shortcomings in contemporary American democracy may be misleading.

Do high taxes on the rich actually reduce inequality between the rich and poor?

The short answer is yes. We found that the countries which, for whatever reason, raised taxes on income and wealth subsequently had lower levels of income and wealth inequality. The longer answer is that this finding comes with some caveats. It is hard to identify factors that lead countries to change their tax policies that wouldn’t also influence inequality, making it difficult to isolate the impact of high taxes on inequality.

What roles do war and technology play on the imposition of high taxes on the richest segment?

We found that it is not just war but mass-mobilized wars, often with conscripted armies, that lead countries to impose high taxes on the rich. Technology has played a decisive role in whether countries can and want to fight wars with mass armies in which a substantial proportion of the population is mobilized. It was not possible to transport, supply, and command these armies until the railroad and other technologies of the industrial revolution were developed, and once militaries could employ technologies such as cruise missiles that allowed them to deliver force at a distance with precision, mass armies became much less desirable. The late 19th to the mid-20th century was the era of the mass army and, in many ways, the era of high taxation on incomes and wealth.

Looking ahead, what do you expect to be the future tax burden for those at the top of income and wealth levels?

We should not expect a return to the high top tax rates of the post-war era. Future wars are more likely to be fought with drones and professional soldiers than mass armies. Absent the new fairness arguments that mass-mobilized wars made credible, it is not clear that in most countries, including the United States, there is likely to be a consensus that taxing income and wealth at substantially higher levels is fair. This is the lesson that we draw from history, and it also fits with what many American voters prefer today. When we have conducted surveys on representative samples of Americans, we have found only minority support for implementing a tax schedule radically more progressive than the one in place today.

We do find, however, that citizens care a great deal about tax fairness and there is substantial support for some tax reforms that resonate with a variety of competing visions for what counts as a fair tax system. For example, in the current U.S. tax system, in some instances the rich actually pay a lower rate of tax than everyone else.  Reforms to address these privileges seem both desirable and a reasonable expectation for future policy.

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