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The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education

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  • Gilat Levy
  • Ronny Razin

Abstract

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

Suggested Citation

  • Gilat Levy & Ronny Razin, 2017. "The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education," American Economic Journal: Microeconomics, American Economic Association, vol. 9(4), pages 141-170, November.
  • Handle: RePEc:aea:aejmic:v:9:y:2017:i:4:p:141-70
    Note: DOI: 10.1257/mic.20160201
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    References listed on IDEAS

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    Cited by:

    1. Levy, Gilat & Razin, Ronny, 2018. "Immigration into Prejudiced Societies: Segregation and Echo Chambers effects," CEPR Discussion Papers 12630, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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