Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31183 
Year of Publication: 
2004
Series/Report no.: 
Discussion Paper No. 1399
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
This paper formalizes a widely discussed peer effect entitled 'acting white'. 'Acting White' is modeled as a two audience signaling quandary: signals that induce highe wages can be signals that induce peer group rejection. Without peer effects, the equilibrium involve all ability types choosing different lecels of education, 'Acting White' alters the equilibrium dramatically: the (posssibly empty) set of lowest ability individuals and the set of highest ability individuals continue to reveal their type through investments in education; ability types in the middle interval pool on a common education level. Only those in the lower intervals are accepted by the group. The model's predictions fit many stylized facts in the anthropology and sociology literatures regarding social interactions among minority group members.
Document Type: 
Working Paper

Files in This Item:
File
Size
322.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.