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Social inference and occupational choice: Type-based beliefs in a Bayesian model of class formation

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  • Oxoby, Robert J.

Abstract

Beliefs are a key motivator of individual behavior. As such, an understanding of how individuals’ beliefs develop is a prerequisite to understanding decision-making and behavior. While rational choice theory posits a Bayesian framework for belief formation, status construction theories argue that beliefs are strongly influenced by status typifications. In this paper, we develop a Bayesian model of belief formation in which individuals use (irrelevant) information on others’ observable type to bias their beliefs. This model is used to analyze a simple occupational choice setting, thereby shedding light on the micro–macro inter-relationship between observable type (e.g. race, gender) and social class.

Suggested Citation

  • Oxoby, Robert J., 2014. "Social inference and occupational choice: Type-based beliefs in a Bayesian model of class formation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 30-37.
    • Handle: RePEc:eee:soceco:v:51:y:2014:i:c:p:30-37
    DOI: 10.1016/j.socec.2014.04.001
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    References listed on IDEAS

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    1. Jordan, J. S., 1991. "Bayesian learning in normal form games," Games and Economic Behavior, Elsevier, vol. 3(1), pages 60-81, February.
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    Cited by:

    1. Atsuko Tanaka, "undated". "Estimation of the Effects of Statistical Discrimination on the Gender Wage Gap," Working Papers 2015-22, Department of Economics, University of Calgary, revised 21 Dec 2015.
    2. Kugler, Adriana D. & Tinsley, Catherine H. & Ukhaneva, Olga, 2021. "Choice of majors: are women really different from men?," Economics of Education Review, Elsevier, vol. 81(C).
    3. Kugler, Adriana & Tinsley, Catherine H. & Ukhaneva, Olga, 2017. "Choice of Majors: Are Women Really Different from Men?," IZA Discussion Papers 10947, Institute of Labor Economics (IZA).
    4. Bosworth, Steven J. & Della Giusta, Marina, 2024. "When Matthew Met Larry: Explaining the Persistence of Gender Underrepresentation in High Status Organizations," IZA Discussion Papers 17460, Institute of Labor Economics (IZA).
    5. Martina Zanella, 2024. "Stereotypical Selection," Trinity Economics Papers tep0224, Trinity College Dublin, Department of Economics, revised Aug 2024.

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    More about this item

    Keywords

    Social inference; Occupational choice; Discrimination;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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