Munich Personal RePEc Archive

Stereotypes, segregation, and ethnic inequality

Yuki, Kazuhiro (2012): Stereotypes, segregation, and ethnic inequality.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_39704.pdf

Download (492Kb) | Preview

Abstract

Disparities in economic outcomes among different ethnic, racial, or religious groups continue to be serious concerns in most economies. Relative economic standings of different groups are rather persistent, although some groups initially in disadvantaged positions successfully caught up with then-advantaged groups. Two obstacles, costly skill investment and negative stereotypes or discriminations in the labor market, seem to distort investment and sectoral decisions and slow down the economic progress of the disadvantaged.

How do these obstacles affect skill investment and sectoral choices of individuals of different groups and the dynamics of their economic outcomes and inter-group inequality? Is affirmative action necessary to significantly improve conditions of the disadvantaged, or redistributive policies sufficient? In order to tackle these questions, this paper develops a dynamic model of statistical discrimination and examines how initial economic standings of groups and initial institutionalized discrimination affect subsequent dynamics.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.