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An economic analysis of social exclusion and inequality

  • Teraji, Shinji

This article proposes a theoretical framework for understanding the nature of institutions, contributing to the emergence of the divergence in earnings. In the article, social exclusion is considered as a direct consequence of unequalized opportunities. The population consists of both qualified and unqualified workers. The article shows that there is a threshold level of average performance by unqualified workers below which only qualified workers can earn the higher wage rate. Social exclusion shapes the structure of incentives, and thereby can in itself be the cause of differences in economic performance.

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File URL: http://www.sciencedirect.com/science/article/B6W5H-51TGG41-6/2/bb0a8700ba4f3dfb1080b49718253914
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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 3 (May)
Pages: 217-223

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Handle: RePEc:eee:soceco:v:40:y:2011:i:3:p:217-223
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

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  16. Juhn, Chinhui, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 79-121, February.
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  18. Morris Altman, 2009. "A Behavioral-Institutional Model of Endogenous Growth and Induced Technical Change," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 43(3), pages 685-714, September.
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