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Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?

In: Inequality and Growth: Patterns and Policy

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  • Karla Hoff

    (World Bank)

Abstract

In many societies, broad segments of the population are barred from full human rights and full participation in society: they are “socially excluded” (World Bank 2013). Social scientists seek to understand the mechanisms by which exclusion occurs in order to determine how to mitigate it. The rational actor model assumes that individuals see all their options objectively, reason without bias, know what is in their self-interest, and act accordingly. The model implies that the dismantling of exploitative structures and unjust, formal barriers to certain groups in markets, schools, and neighborhoods are “all” that is required to end social exclusion.

Suggested Citation

  • Karla Hoff, 2016. "Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 6, pages 172-200, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-55454-3_6
    DOI: 10.1057/9781137554543_6
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    1. Andrei Shleifer, 2012. "Psychologists at the Gate: A Review of Daniel Kahneman's Thinking, Fast and Slow," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1080-1091, December.
    2. Karla Hoff & Joseph E. Stiglitz, 2010. "Equilibrium Fictions: A Cognitive Approach to Societal Rigidity," American Economic Review, American Economic Association, vol. 100(2), pages 141-146, May.
    3. Pedro Carneiro & Emanuela Galasso & Rita Ginja, 2019. "Tackling Social Exclusion: Evidence from Chile," The Economic Journal, Royal Economic Society, vol. 129(617), pages 172-208.
    4. Lakshmi Iyer & Anandi Mani & Prachi Mishra & Petia Topalova, 2012. "The Power of Political Voice: Women's Political Representation and Crime in India," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 165-193, October.
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    6. Allison Demeritt & Karla Hoff, 2016. "“Small Miracles” — Behavioral Insights to Improve Development Policy: The World Development Report 2015," International Economic Association Series, in: Timothy Besley (ed.), Contemporary Issues in Development Economics, chapter 3, pages 19-43, Palgrave Macmillan.
    7. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    8. Shleifer, Andrei, 2012. "Psychologists at the Gate: Review of Daniel Kahneman’s Thinking, Fast and Slow," Scholarly Articles 10735580, Harvard University Department of Economics.
    9. Lori Beaman & Raghabendra Chattopadhyay & Esther Duflo & Rohini Pande & Petia Topalova, 2009. "Powerful Women: Does Exposure Reduce Bias?," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1497-1540.
    10. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    11. World Bank, 2013. "Inclusion Matters : The Foundation for Shared Prosperity [Inclusión social : clave de la prosperidad para todos - resumen]," World Bank Publications - Books, The World Bank Group, number 16195, December.
    12. Nicola Gennaioli & Andrei Shleifer, 2010. "What Comes to Mind," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1399-1433.
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    16. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
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    19. Karla Hoff & Priyanka Pandey, 2006. "Discrimination, Social Identity, and Durable Inequalities," American Economic Review, American Economic Association, vol. 96(2), pages 206-211, May.
    20. Matthew Rabin & Joel L. Schrag, 1999. "First Impressions Matter: A Model of Confirmatory Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 37-82.
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    Cited by:

    1. Julius Okello & Yuan Zhou & Ian Barker & Elmar Schulte-Geldermann, 2019. "Motivations and Mental Models Associated with Smallholder Farmers’ Adoption of Improved Agricultural Technology: Evidence from Use of Quality Seed Potato in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(2), pages 271-292, April.
    2. Allison Demeritt & Karla Hoff, 2016. "“Small Miracles” — Behavioral Insights to Improve Development Policy: The World Development Report 2015," International Economic Association Series, in: Timothy Besley (ed.), Contemporary Issues in Development Economics, chapter 3, pages 19-43, Palgrave Macmillan.
    3. Kaushik Basu, 2017. "Discrimination as Focal Point: Markets and Group Identity," Forum for Social Economics, Taylor & Francis Journals, vol. 46(2), pages 128-138, April.
    4. Wozniak, David & MacNeill, Timothy, 2020. "Racial discrimination in the lab: Evidence of statistical and taste-based discrimination," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).

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