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A Theory of Self-Segregation as a Response to Relative Deprivation

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  • Stark, Oded

    (University of Oslo and University of Vienna)

  • You Qiang Wang

    (The Chinese University of Hong Kong)

Abstract

We model group formation as a response to relative deprivation. We employ a simple measure of relative deprivation. We show that the process of deprivation-induced self-selection into groups reaches a unique steady state. We study the social welfare implications of the deprivation-induced process of group formation and show that when individuals are left to pursue their betterment the resulting state tends to fall short of the best social outcome. We present several implications of the model including federalism and the demand for secession.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 168.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:168

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Cited by:
  1. Stark, Oded & Fan, C. Simon, 2009. "A Theory of Migration as a Response to Occupational Stigma," Discussion Papers 55363, University of Bonn, Center for Development Research (ZEF).

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