Advanced Search
MyIDEAS: Login

Statistical discrimination with neighborhood effects: Can integration eliminate negative stereotypes?

Contents:

Author Info

  • Shubham Chaudhuri

    ()
    (Columbia University - Department of Economics)

  • Rajiv Sethi

    ()
    (Barnard College, Columbia University)

Abstract

We introduce neighborhood effects in the costs of human capital acquisition into a model of statistical discrimination in labor markets. This creates a link between the level of segregation and the likelihood and extent of statistical discrimination. As long as negative stereotypes persist in the face of increasing integration, skill levels rise in the disadvantaged group and fall in the advantaged group. If integration proceeds beyond some threshold, however, there can be a qualitative change in the set of equilibria, with negative stereotypes becoming unsustainable and skill levels in both groups changing significantly. This change can work in either direction: skill levels may rise in both groups, or fall in both groups. Which of these outcomes arises depends on the population share of the disadvantaged group, and on the curvature of the relationship between neighborhood quality and the costs of human capital accumulation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.columbia.edu/RePEc/pdf/DP0304-09.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.econ.columbia.edu/RePEc/pdf/DP0304-09.pdf [301 Moved Permanently]--> http://econ.columbia.edu/RePEc/pdf/DP0304-09.pdf). If this is indeed the case, please notify (Discussion Paper Coordinator)
Download Restriction: no

Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0304-09.

as in new window
Length: 31 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:clu:wpaper:0304-09

Contact details of provider:
Postal: 1022 International Affairs Building, 420 West 118th Street, New York, NY 10027
Phone: (212) 854-3680
Fax: (212) 854-8059
Web page: http://www.econ.columbia.edu/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  2. Rajiv Sethi & Rohini Somanathan, 2004. "Inequality and segregation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-03, Indian Statistical Institute, New Delhi, India.
  3. Benabou, Roland, 1996. "Heterogeneity, Stratification, and Growth: Macroeconomic Implications of Community Structure and School Finance," American Economic Review, American Economic Association, vol. 86(3), pages 584-609, June.
  4. Borjas, George J & Goldberg, Matthew S, 1978. "Biased Screening and Discrimination in the Labor Market," American Economic Review, American Economic Association, vol. 68(5), pages 918-22, December.
  5. Peter Norman, 2003. "Statistical Discrimination and Efficiency," Review of Economic Studies, Wiley Blackwell, vol. 70(3), pages 615-627, 07.
  6. Andrea Moro & Peter Norman, . "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department.
  7. Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September.
  8. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  9. Schwab, Stewart, 1986. "Is Statistical Discrimination Efficient?," American Economic Review, American Economic Association, vol. 76(1), pages 228-34, March.
  10. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  12. Kremer, Michael, 1997. "How Much Does Sorting Increase Inequality?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 115-39, February.
  13. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-90, June.
  14. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  15. Moro, Andrea & Norman, Peter, 2004. "A general equilibrium model of statistical discrimination," Journal of Economic Theory, Elsevier, vol. 114(1), pages 1-30, January.
  16. Richard Arnott & John Rowse, 1982. "Peer Group Effects and Educational Attainment," Working Papers 497, Queen's University, Department of Economics.
  17. Akerlof, George A, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 599-617, November.
  18. Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-47, June.
  19. Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August.
  20. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Sáez-Martı´, Maria & Zenou, Yves, 2012. "Cultural transmission and discrimination," Journal of Urban Economics, Elsevier, vol. 72(2), pages 137-146.
  2. Brendan O'Flaherty & Rajiv Sethi, 2004. "Robbery and Race," Game Theory and Information 0411005, EconWPA, revised 10 Jan 2005.
  3. Samuel Bowles & Rajiv Sethi, 2006. "Social Segregation and the Dynamics of Group Inequality," UMASS Amherst Economics Working Papers 2006-02, University of Massachusetts Amherst, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:clu:wpaper:0304-09. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Discussion Paper Coordinator).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.