Social Structure and Development: A Legacy of the Holocaust in Russia

We document a statistical association between the severity of the persecution, displacement and mass murder of Jews by the Nazis during World War II and long-run economic and political outcomes within Russia. Cities that experienced the Holocaust most intensely have grown less, and both cities and administrative districts (oblasts) where the Holocaust had the largest impact have worse economic and political outcomes since the collapse of the Soviet Union. We provide evidence that the lasting impact of the Holocaust may be attributable to a permanent change it induced in the social structure across different regions of Russia.