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The coevolution of segregation, polarized beliefs and discrimination: the case of private versus state education

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  • Levy, Gilat
  • Razin, Ronny

Abstract

In this paper we analyze the coevolution of segregation into private and state schools, beliefs about the educational merits of di¤erent schools, and labour market discrimination. In a dynamic model, we characterize a necessary and sufficient condition on initial levels of segregation and beliefs under which full polarisation of beliefs and long run labour market discrimination are sustainable. The model suggests a new perspective on the long term e¤ects of different policy interventions, such as integration, school vouchers and policies that are directly targeted towards influencing beliefs.

Suggested Citation

  • Levy, Gilat & Razin, Ronny, 2017. "The coevolution of segregation, polarized beliefs and discrimination: the case of private versus state education," LSE Research Online Documents on Economics 68532, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:68532
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    Cited by:

    1. Parimal K. Bag & Bibhas Saha & Shiva Sikdar, 2021. "Prejudice, bias and identity neutral policy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(1), pages 173-203, January.
    2. Levy, Gilat & Razin, Ronny, 2018. "Immigration into Prejudiced Societies: Segregation and Echo Chambers effects," CEPR Discussion Papers 12630, C.E.P.R. Discussion Papers.
    3. Levy, Gilat & Razin, Ronny, 2019. "Echo chambers and their effects on economic and political outcomes," LSE Research Online Documents on Economics 101413, London School of Economics and Political Science, LSE Library.
    4. Joao Firmino & Luis C. Nunes & Silvia de Almeida & Susana Batista, 2020. "Student segregation across and within schools. The case of the Portuguese public school system," Nova SBE Working Paper Series wp633, Universidade Nova de Lisboa, Nova School of Business and Economics.
    5. Ruzzier, Christian A. & Woo, Marcelo D., 2023. "Discrimination with inaccurate beliefs and confirmation bias," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 379-390.
    6. Meng, Delong, 2021. "Learning from like-minded people," Games and Economic Behavior, Elsevier, vol. 126(C), pages 231-250.
    7. Lisa Windsteiger, 2021. "Monopolistic supply of sorting, inequality, and welfare," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(5), pages 801-821, October.
    8. Lisa Windsteiger, 2018. "Sorting in the Presence of Misperceptions," Working Papers tax-mpg-rps-2018-08, Max Planck Institute for Tax Law and Public Finance.
    9. Windsteiger, Lisa, 2022. "The redistributive consequences of segregation and misperceptions," European Economic Review, Elsevier, vol. 144(C).

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