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Minorities and Endogenous Segregation

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  • Jan Eeckhout

Abstract

A theoretical analysis is proposed of segregation as an equilibrium phenomenon in a random-matching model of the marriage market. Otherwise identical partners possess a pay-off-irrelevant characteristic, colour. We derive the set of colour-blind equilibria and show that they are generically constrained inefficient. Equilibrium segregation strategies are strategies that condition actions on the type of match. It is shown that distributions of types exist such that segregation equilibrium pay-offs Pareto dominate colour-blind pay-offs. For other distributions, segregation also generates conflict, where the majority unambiguously gains, while the minority group may lose. Giving preferential treatment, that is, minority bias, can increase overall welfare. Copyright 2006, Wiley-Blackwell.

Suggested Citation

  • Jan Eeckhout, 2006. "Minorities and Endogenous Segregation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(1), pages 31-53.
    • Handle: RePEc:oup:restud:v:73:y:2006:i:1:p:31-53
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    File URL: http://hdl.handle.net/10.1111/j.1467-937X.2006.00368.x
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    Cited by:

    1. Choy, James P., 2016. "Constructing Social Division to Support Cooperation," Economic Research Papers 269582, University of Warwick - Department of Economics.
    2. Choy, James P., 2013. "Constructing Social Division to Support Cooperation: Theory and Evidence from Nepal," Economic Research Papers 270538, University of Warwick - Department of Economics.
    3. Catherine Bros, 2008. "Power distribution and endogenous segregation," Post-Print halshs-00204974, HAL.
    4. Yu Awaya & Hiroki Fukai & Makoto Watanabe, 2017. "A Model of Collateral," CESifo Working Paper Series 6731, CESifo.
    5. Levy, Gilat & Razin, Ronny, 2015. "Segregation in Education and Labour Market Discrimination: The Role of Peer Beliefs," CEPR Discussion Papers 10394, C.E.P.R. Discussion Papers.
    6. David McAdams, 2011. "Performance and Turnover in a Stochastic Partnership," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 107-142, November.
    7. Rafael Rob & Huanxing Yang, 2010. "Long-term relationships as safeguards," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(2), pages 143-166, May.
    8. Filip Vesely & Chun-Lei Yang, 2013. "On Optimal Social Convention in Voluntary Continuation Prisoner's Dilemma Games," CESifo Working Paper Series 4553, CESifo.
    9. Michèle Belot & Marco Francesconi, 2013. "Dating Preferences and Meeting Opportunities in Mate Choice Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 474-508.
    10. Balazs Szentes & Marcin Pęski, 2012. "Spontaneous Discrimination," Working Papers 2012-005, Becker Friedman Institute for Research In Economics.
    11. Harbaugh, Rick & To, Ted, 2014. "Opportunistic discrimination," European Economic Review, Elsevier, vol. 66(C), pages 192-204.
    12. Joyee Deb & Takuo Sugaya & Alexander Wolitzky, 2020. "The Folk Theorem in Repeated Games With Anonymous Random Matching," Econometrica, Econometric Society, vol. 88(3), pages 917-964, May.
    13. Jiadong Gu & Peter Norman, 2020. "A Search Model of Statistical Discrimination," Papers 2004.06645, arXiv.org, revised Apr 2020.
    14. Hanjoon Michael Jung, 2012. "Ability-based Cooperation in a Prisoner’s Dilemma Game," Korean Economic Review, Korean Economic Association, vol. 28, pages 137-160.
    15. Choy, James, 2013. "A Theory of Cooperation through Social Division, with Evidence from Nepal," CAGE Online Working Paper Series 115, Competitive Advantage in the Global Economy (CAGE).
    16. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2009. "Voluntarily Separable Repeated Prisoner's Dilemma," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 993-1021.
    17. Coles, Melvyn & Francesconi, Marco, 2007. "On the Emergence of Toyboys: Equilibrium Matching with Ageing and Uncertain Careers," IZA Discussion Papers 2612, Institute of Labor Economics (IZA).
    18. Tom Potoms & Tom Truyts, 2020. "Unhappy is the land without symbols - Group symbols in infinitely repeated public good games," Working Paper Series 1720, Department of Economics, University of Sussex Business School.
    19. Dewan, Torun & Wolton, Stephane, 2019. "A Political Economy of Social Discrimination," MPRA Paper 94394, University Library of Munich, Germany.
    20. Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara & Nobue Suzuki, 2015. "Efficiency may improve when defectors exist," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 423-460, November.
    21. Hector Galindo-Silva, 2020. "Ethnic Groups' Access to State Power and Group Size," Papers 2003.08064, arXiv.org.
    22. Gautier, Pieter A. & Svarer, Michael & Teulings, Coen N., 2010. "Marriage and the city: Search frictions and sorting of singles," Journal of Urban Economics, Elsevier, vol. 67(2), pages 206-218, March.
    23. Anderson, Axel, 2015. "A dynamic generalization of Becker's assortative matching result," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 290-310.

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