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Cultural Transmission and Discrimination

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Author Info
Maria Saez-Marti
Yves Zenou

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Abstract

Black and white 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’ purposeful investment on the trait and the social environment where children live. 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 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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Paper provided by Institute for Empirical Research in Economics - IEW in its series IEW - Working Papers with number iewwp348.

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Date of creation: Dec 2007
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Handle: RePEc:zur:iewwpx:348

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

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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

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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:
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    Other versions:
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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. Doepke, Matthias & Zilibotti, Fabrizio, 2005. "Patience Capital and the Demise of the Aristocracy," Seminar Papers 735, Stockholm University, Institute for International Economic Studies. [Downloadable!]
    Other versions:
  5. Doepke, Matthias & Zilibotti, Fabrizio, 2007. "Occupational Choice and the Spirit of Capitalism," CEPR Discussion Papers 6405, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Francois, Patrick, 2008. "Norms and Institution Formation," CEPR Discussion Papers 6735, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  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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