Dynamics of Social Norms in the City
AbstractWe study how in a city either opposite social norms remain or a particular code of behavior spreads and ultimately prevails. We develop a multicommunity model with overlapping generations. When young, an individual chooses the level of educational e¤ort. The crucial feature is that her decision is inuenced by peers living in the area who favor either a social norm valuing education or a social norm discrediting education. When an adult, an individual who cares about her o¤springs expected income chooses the familys location. Endogenous location leads to di¤erent patterns of social norms in the city. We identify two types of urban equilibrium: a culturally-balanced city where social norms are distributed evenly among urban areas and the rate of education is the same in each urban area and a culturally-divided city where urban areas oppose on their prevailing social norm and exhibit di¤erent rates of education. We then study the dynamics of social norms. We show that there are multiple long-run patterns of social norms. A particular steady state is achieved depending on the initial distribution of social norms support in the population. Finally, we show that the public policies promoting social integration can lead in the long run to a population unanimously discrediting education and getting less education than letting the culturally-divided city arise.
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Bibliographic InfoPaper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201315.
Date of creation: Apr 2013
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Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-11 (All new papers)
- NEP-EVO-2013-05-11 (Evolutionary Economics)
- NEP-MIC-2013-05-11 (Microeconomics)
- NEP-SOC-2013-05-11 (Social Norms & Social Capital)
- NEP-URE-2013-05-11 (Urban & Real Estate Economics)
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