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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. 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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