Social Inference and Occupational Choice: Type-Based Biases in a Bayesian Model of Class Formation
AbstractBeliefs are a key motivator of individual behavior. As such, an understanding of how individuals' beliefs develop is a prerequisite to understanding decision-making and behavior. While rational choice theory posits a Bayesian model framework for belief formation, sta- tus construction theories argue that beliefs are strongly in uenced by status typi cations. In this paper, we develop a Bayesian model of belief formation in which individuals use irrelevant information on others' observable type to bias their beliefs. This model is used to analyze a simple occupational choice setting, thereby shedding light on the micro-macro inter-relationship between observable type (e.g. race, gender) and social class.
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Bibliographic InfoPaper provided by Department of Economics, University of Calgary in its series Working Papers with number 2009-07.
Date of creation: 11 Jan 2009
Date of revision: 11 Jan 2009
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
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