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Cultural Transmission, Discrimination and Peer Effects

  • Sáez-Martí, Maria


    (University of Zurich)

  • Zenou, Yves


    (Department of Economics, Stockholm University and Research Institute of Industrial Economics)

Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process which depends on parents’ investment on the trait and the social environment where children live. We show that, if a high enough proportion of employers have taste-based prejudices against minority workers, their prejudices are always self-fulfilled in steady state. Affirmative Action improves the welfare of minorities whereas integration is beneficial to minority workers but detrimental to workers from the majority group. If Affirmative Action quotas are high enough or integration is strong enough, employers’ negative stereotypes cannot be sustained in steady-state.

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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2011:3.

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Length: 30 pages
Date of creation: 24 Jan 2011
Date of revision:
Handle: RePEc:hhs:sunrpe:2011_0003
Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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  1. Assar Lindbeck & Sten Nyberg & Jšrgen W. Weibull, 1999. "Social Norms And Economic Incentives In The Welfare State," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 1-35, February.
  2. Assar Lindbeck & Sten Nyberg & Jörg Weibull, 2003. "Social Norms and Welfare State Dynamics," CESifo Working Paper Series 931, CESifo Group Munich.
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