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Job Reservation and Intergenerational Transmission of Preferences

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  • Chen, Hung-Ju
  • Sultana, Rezina

Abstract

This paper examines the effects of compensatory-discrimination policies in a caste-based segregated economy where some high-paid positions in a certain industry are reserved for low-caste insiders as a consequence of the implementation of the policies. Cultural attitudes towards preferences for work-loving and leisure-loving traits evolve endogenously. The economy will converge to the efficient (inefficient) equilibrium with larger (smaller) fractions of work lovers among the insider and outsider populations if the profits in the industry with the purview of the reservation policy are sufficiently low (high) or the profits in the industry without the purview of the reservation policy are sufficiently high (low). Changes in the degree of compensatory-discrimination policies will affect the dynamics for insiders and outsiders differently.

Suggested Citation

  • Chen, Hung-Ju & Sultana, Rezina, 2013. "Job Reservation and Intergenerational Transmission of Preferences," MPRA Paper 45036, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:45036
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    References listed on IDEAS

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    More about this item

    Keywords

    Caste system; cultural transmission; job reservations;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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