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Minorities and Endogenous Segregation

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  • Jan Eeckhout
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    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.

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    File URL: http://hdl.handle.net/10.1111/j.1467-937X.2006.00368.x
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    Bibliographic Info

    Article provided by Oxford University Press in its journal The Review of Economic Studies.

    Volume (Year): 73 (2006)
    Issue (Month): 1 ()
    Pages: 31-53

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    Handle: RePEc:oup:restud:v:73:y:2006:i:1:p:31-53

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    Cited by:
    1. Litina, Anastasia, 2013. "Unfavorable Land Endowment, Cooperation, and Reversal of Fortune," CAGE Online Working Paper Series 114, Competitive Advantage in the Global Economy (CAGE).
    2. 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.
    3. Marcin Peski & Balázs Szentes, 2012. "Spontaneous Discrimination," Working Papers 2012-005, Becker Friedman Institute for Research In Economics.
    4. David McAdams, 2011. "Performance and Turnover in a Stochastic Partnership," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 107-42, November.
    5. 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.
    6. Rafael Rob & Huanxing Yang, 2010. "Long-term relationships as safeguards," Economic Theory, Springer, vol. 43(2), pages 143-166, May.
    7. Rick Harbaugh & Ted To, 2008. "Opportunistic Discrimination," Working Papers 2008-07, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    8. Coles, Melvyn & Francesconi, Marco, 2007. "On the Emergence of Toyboys: Equilibrium Matching with Ageing and Uncertain Careers," IZA Discussion Papers 2612, Institute for the Study of Labor (IZA).
    9. Filip Vesely & Chun-Lei Yang, 2013. "On Optimal Social Convention in Voluntary Continuation Prisoner's Dilemma Games," CESifo Working Paper Series 4553, CESifo Group Munich.

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