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Aspirations, Segregation and Occupational Choice

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  • Dilip Mookherjee

    ()
    (Boston University)

  • Stefan Napel

    (University of Bayreuth)

  • Debraj Ray

    (New York University)

Abstract

This paper examines steady states of an overlapping generations economy with a given distribution of household locations over a one-dimensional interval. Parents decide whether or not to educate their children. Such decisions are a ected by location: parental aspirations depend on the earnings of their neighbors. At the same time, economy-wide wages endogenously adjust to bring factor supplies into line with demand. The model therefore combines local social interaction with global market interaction. The paper studies steadystate configurations of skill acquisition, both with and without segregation, and studies the macroeconomic and welfare effects of segregation on aggregate economic outcomes.

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Bibliographic Info

Paper provided by Boston University - Department of Economics in its series Boston University - Department of Economics - The Institute for Economic Development Working Papers Series with number dp-182.

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Length: 28
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:bos:iedwpr:dp-182

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References

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  1. Romans Pancs & Nicolaas J. Vriend, 2003. "Schelling's Spatial Proximity Model of Segregation Revisited," Working Papers 487, Queen Mary, University of London, School of Economics and Finance.
  2. Mookherjee, Dilip & Napel, Stefan, 2007. "Intergenerational mobility and macroeconomic history dependence," Journal of Economic Theory, Elsevier, vol. 137(1), pages 49-78, November.
  3. Dilip Mookherjee & Stefan Napel & Debraj Ray, 2008. "Aspirations, Segregation and Occupational Choice," Working Papers id:1710, eSocialSciences.
  4. Napel, Stefan & Schneider, Andrea, 2008. "Intergenerational talent transmission, inequality, and social mobility," Economics Letters, Elsevier, vol. 99(2), pages 405-409, May.
  5. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  6. Christian Ghiglino & Sanjeev Goyal, 2008. "Keeping up with the neighbours: social interaction in a market economy," Economics Discussion Papers 655, University of Essex, Department of Economics.
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Citations

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Cited by:
  1. Isidro Soloaga & Mariana Pereira, 2013. "External Returns to Higher Education in Mexico 2000-2010," Working Papers 0313, Universidad Iberoamericana, Department of Economics.
  2. Carlos Chiapa & José Luis Garrido & Silvia Prina, 2010. "The effect of social programs and exposure to professionals on the educational aspirations of the poor," Serie documentos de trabajo del Centro de Estudios Económicos 2010-11, El Colegio de México, Centro de Estudios Económicos.
  3. Christian Ghiglino & Sanjeev Goyal, 2010. "Keeping Up with the Neighbors: Social Interaction in a Market Economy," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 90-119, 03.
  4. Dilip Mookherjee & Stefan Napel & Debraj Ray, 2008. "Aspirations, Segregation and Occupational Choice," Working Papers id:1710, eSocialSciences.
  5. CESI, Berardino & PAOLINI, dimitri, 2012. "Peer group and distance: when widening university participation is better," CORE Discussion Papers 2012042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Koczan, Zs, 2013. "Does identity matter," Cambridge Working Papers in Economics 1313, Faculty of Economics, University of Cambridge.
  7. Dibyendu S. Maiti & Arup Mitra, 2010. "Skills, Informality and Development," Working Papers id:3115, eSocialSciences.
  8. Marcus Böhme, 2012. "Migration and Education Aspirations - Another Channel of Brain Gain?," Kiel Working Papers 1811, Kiel Institute for the World Economy.

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