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Title:Cultural transmission and discrimination PDF Logo
Authors:Sáez-Martí, María
Zenou, Yves
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1880
Abstract:Each worker belongs to either the majority or the minority group and, irrespective of the group she belongs to, 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' purposeful investment on the trait and the social environment where children live. In a segregated society, 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 without affecting majority workers 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.
Subjects:ghetto culture
overlapping generations
rational expectations
multiple equilibria
peer effect
JEL:J15
J71
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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