Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/180454
Authors: 
Olcina, Gonzalo
Panebianco, Fabrizio
Zenou, Yves
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers 11436
Abstract: 
We consider a model where each individual (or ethnic minority) is embedded in a network of relationships and decides whether or not she wants to be assimilated to the majority norm. Each individual wants her behavior to agree with her personal ideal action or norm but also wants her behavior to be as close as possible to the average assimilation behavior of her peers. We show that there is always convergence to a steady-state and characterize it. We also show that different assimilation norms may emerge in steady state depending on the structure of the network. We then consider the role of cultural and government leaders in the assimilation process of ethnic minorities and an optimal tax/subsidy policy which aim is to reach a certain level of assimilation in the population.
Subjects: 
peer pressure
social norms
networks
assimilation
cultural leader
JEL: 
D83
D85
J15
Z13
Document Type: 
Working Paper
Social Media Mentions:

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