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Cultural Transmission and Discrimination

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Author Info
Maria Saez-Marti () (IUI)
Yves Zenou () (IUI, GAINS and IZA Bonn)

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Abstract

Each worker belongs to either the majority or the minority group and, irrespective of the group she belongs to, 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' purposeful investment on the trait and the social environment where children live. In a segregated society, we show that, if a high enough proportion of employers have tastebased prejudices against minority workers, their prejudices are always self-fulfilled in steady state. Affirmative Action improves the welfare of minorities without affecting majority workers 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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1880.

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Length: 31 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1880

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Related research
Keywords: ghetto culture; overlapping generations; rational expectations; multiple equilibria; peer effects;

Other versions of this item:

Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

This paper has been announced in the following NEP Reports:

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.:
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    Other versions:
  2. 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. [Downloadable!] (restricted)
    Other versions:
  3. Ladd, Helen F & Ludwig, Jens, 1997. "Federal Housing Assistance, Residential Relocation, and Educational Opportunities: Evidence from Baltimore," American Economic Review, American Economic Association, vol. 87(2), pages 272-77, May. [Downloadable!] (restricted)
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  8. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April. [Downloadable!] (restricted)
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  13. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March. [Downloadable!] (restricted)
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  14. Angrist, Joshua D. & Lang, Kevin, 2004. "Does School Integration Generate Peer Effects? Evidence from Boston’s Metco Program," IZA Discussion Papers 976, Institute for the Study of Labor (IZA). [Downloadable!]
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  21. Hauk, Esther & Saez-Marti, Maria, 2002. "On the Cultural Transmission of Corruption," Journal of Economic Theory, Elsevier, vol. 107(2), pages 311-335, December. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, 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.)

  1. Matthias Doepke, . "Patience Capital, Occupational Choice, and the Spirit of Capitalism," UCLA Economics Online Papers 410, UCLA Department of Economics. [Downloadable!]
    Other versions:
  2. Patacchini, Eleonora & Zenou, Yves, 2004. "Intergenerational Education Transmission: Neighborhood Quality and/or Parents' Involvement?," Working Paper Series 631, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  3. Claudia Senik & Thierry Verdier, 2007. "Segregation, entrepreneurship and work values: the case of France," PSE Working Papers 2007-37, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  4. Francois, Patrick, 2008. "Norms and Institution Formation," CEPR Discussion Papers 6735, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Matthias Doepke & Fabrizio Zilibotti, 2007. "Occupational Choice and the Spirit of Capitalism," NBER Working Papers 12917, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Doepke, Matthias & Zilibotti, Fabrizio, 2005. "Patience Capital and the Demise of the Aristocracy," CEPR Discussion Papers 5106, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Jean-Baptiste Michau, 2009. "Unemployment Insurance and Cultural Transmission: Theory and Application to European Unemployment," CEP Discussion Papers dp0936, Centre for Economic Performance, LSE. [Downloadable!]
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This page was last updated on 2009-11-30.

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