Cultural transmission and discrimination
2012 (English)In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 72, no 2-3, 137-146 p.Article in journal (Refereed) Published
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 in the trait and the social environment where children live. If a sufficiently high proportion of employers have taste-based prejudices against minority workers, we show that their prejudices are always self-fulfilled in steady state and minority workers end up having, on average, worse work habits than majority workers. This leads to a ghetto culture. Affirmative Action can improve the welfare of minorities whereas integration can be beneficial to minority workers but detrimental to workers from the majority group.
Place, publisher, year, edition, pages
2012. Vol. 72, no 2-3, 137-146 p.
Ghetto culture, Overlapping generations, Rational expectations, Multiple equilibria, Peer effects, Neighborhood effects
IdentifiersURN: urn:nbn:se:su:diva-81828DOI: 10.1016/j.jue.2012.04.005ISI: 000307861600005OAI: oai:DiVA.org:su-81828DiVA: diva2:565411