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Cultural Dynamics, Social Mobility and Urban Segregation

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  • Emeline Bezin

    (Paris School of Economics (PSE), France)

  • Fabien Moizeau

    (CREM, UMR CNRS 6211, University of Rennes 1, France)

Abstract

We consider the relationship between intergenerational mobility and urban segregation. To this end, we develop a model of neighbourhood formation and preference transmission. The key feature here is that the incentives the parents have to transmit their trait to their children depend on the endogenous social composition of the neighbourhood. When the urban equilibrium that emerges at each date is segregated, some urban areas are characterized by better social mobility prospects than others. Segregation also generates some persistence of socio-economic status within dynasties. We show that there exist multiple history-dependent steady-states in the joint dynamics of segregation and the distribution of culture traits. Further, segregation has ambiguous e ects for long run efficiency. We show that depending on the degree of substitutability between the two instruments of socialization (i.e, individual e ort and residential choice), integration may emerge endogenously and be efficient. This suggests public policies that would produce neighbourhood socio-economic compositions that are more favourable to the transmission of particular cultural traits, such as for instance group-based policies.

Suggested Citation

  • Emeline Bezin & Fabien Moizeau, 2015. "Cultural Dynamics, Social Mobility and Urban Segregation," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201513, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201513
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    Keywords

    cultural transmission; peer effects; residential segregation; human capital inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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