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Cultural Transmission, Discrimination and Peer Effects

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Author Info

  • Sáez-Martí, Maria

    ()
    (University of Zurich)

  • Zenou, Yves

    ()
    (Department of Economics, Stockholm University and Research Institute of Industrial Economics)

Abstract

Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process which depends on parents’ investment on the trait and the social environment where children live. We show that, if a high enough proportion of employers have taste-based prejudices against minority workers, their prejudices are always self-fulfilled in steady state. Affirmative Action improves the welfare of minorities whereas integration is beneficial to minority workers but detrimental to workers from the majority group. If Affirmative Action quotas are high enough or integration is strong enough, employers’ negative stereotypes cannot be sustained in steady-state.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2011:3.

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Length: 30 pages
Date of creation: 24 Jan 2011
Date of revision:
Handle: RePEc:hhs:sunrpe:2011_0003

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Related research

Keywords: Ghetto culture; overlapping generations; rational expectations; multiple equilibria; peer effects;

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References

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  1. Lindbeck, Assar & Nyberg, Sten & Weibull, Jörgen W., 2002. "Social Norms and Welfare State Dynamics," Working Paper Series 585, Research Institute of Industrial Economics.
  2. Assar Lindbeck & Sten Nyberg & Jšrgen W. Weibull, 1999. "Social Norms And Economic Incentives In The Welfare State," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 1-35, February.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Affirmative action and stereotypes
    by Economic Logician in Economic Logic on 2011-03-01 15:29:00
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Cited by:
  1. Doepke, Matthias & Zilibotti, Fabrizio, 2013. "Culture, Entrepreneurship, and Growth," IZA Discussion Papers 7459, Institute for the Study of Labor (IZA).

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  1. Economic Logic blog

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