Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81168
Authors: 
Verdier, Thierry
Zenou, Yves
Year of Publication: 
2003
Series/Report no.: 
IUI Working Paper 602
Abstract: 
This paper provides a unified explanation for why blacks commit more crime, are located in poorer neighborhoods and receive lower wages than whites. If everybody believes that blacks are more criminal than whites - even if there is no basis for this - then blacks are offered lower wages and, as a result, locate further away from jobs. Distant residence increases even more the black-white wage gap because of more tiredness and higher commuting costs. Blacks have thus a lower opportunity cost of committing crime and become indeed more criminal than whites. Therefore beliefs are self-fulfilling.
Subjects: 
Self-Fulfilling Prejudies
Urban Black Ghettos
Crime
JEL: 
J15
K42
R14
Document Type: 
Working Paper

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