Yuki, Kazuhiro (2012): Stereotypes, segregation, and ethnic inequality.
Download (492Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Stereotypes, segregation, and ethnic inequality|
|Keywords:||ethnic or racial inequality; statistical discrimination; labor market segregation; skill investment|
|Subjects:||J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
J - Labor and Demographic Economics > J7 - Labor Discrimination > J71 - Discrimination
J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities and Races; Non-labor Discrimination
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
|Depositing User:||Kazuhiro Yuki|
|Date Deposited:||27. Jun 2012 23:22|
|Last Modified:||12. Feb 2013 22:36|
 Aigner, D.J. and G.G. Cain (1977), ”Statistical theories of discrimination in labor markets,” Industrial and Labor Relations Review 30(2):175−187.
 Aslund, O. and O. N. Skans (2010), ”Will I see you at work? Ethnic workplace segregation in Sweden, 1985-2002,” Industrial and Labor Relations Review 63 (3), 471−493.
 Baker, D., M. Akiba, G. LeTendre, and A. Wiseman (2001), ”Worldwide shadow education: outside-school Learning, institutional quality of schooling, and cross-national mathematics achievement,” Educational Evaluation and Policy Analysis 23 (1), 1−17.
 Bayard, K., J. Hellerstein, D. Neumark, and K. Troske (1999), “Why are racial and ethnic wage gaps larger for men than for women? Exploring the role of segregation using the new worker-establishment characteristics database,” NBER Working Paper No.6997.
 Becker, G.S. (1971), The Economics of Discrimination, 2nd ed., Chicago: Univ. of Chicago Press.
 Borjas, G. (1993), ”Ethnic capital and intergenerational mobility,” Quarterly Journal of Economics 107 (1), 123−50.
 Borjas, G. (1994), “Long-run convergence of ethnic skill differentials: the children and grandchildren of the Great Migration,” Industrial and Labor Relations Review 47(4), 553−573.
 Bowles, S., G. Loury, and R. Sethi (2010), ”The emergence and persistence of group inequality,” mimeo, Columbia University.
 Bray, M. and P. Kwok (2003), ”Demand for private supplementary tutoring: conceptual considerations, and socio-economic patterns in Hong Kong,” Economics of Education Review 22 (6), 611−620.
 Charles, K. K. and J. Guryan (2008), ”Prejudice and wages: an empirical assessment of Becker’s the Economics of Discrimination,” Journal of Political Economy 116(5), 773−809.
 Chaudhuri, S. and R. Sethi (2008), ”Statistical discrimination with peer effects: can integration eliminate negative stereotypes?,” Review of Economic Studies 75 (2), 579−596.
 Coate, S. and G. Loury (1993), ”Will affirmative-action policies eliminate negative stereotypes?,” American Economic Review 83 (5), 1220−40.
 Darity, W.A.Jr., J. Dietrich, and D.K.Guilkey (2001), “Persistent advantage or disadvantage? Evidence in support of the intergenerational drag hypothesis”, American Journal of Economics and Sociology 60(2), 435−70.
 Fang, H. and A. Moro (2010), ”Theories of statistical discrimination and affirmative action: a survey.” In Handbook of Social Economics, Vol IA, edited by J. Benhabib, A. Bisin, and M. Jackson. Amsterdam: Elsevier.
 Galor, O. and J. Zeira (1993), ”Income distribution and macroeconomics”, Review of Economic Studies 60 (1), 35−52.
 Giuliano, L., D. I. Levine, and J. Leonard (2011), “Racial bias in the manager-employee relationship− An analysis of quits, dismissals, and promotions at a large retail firm,” Journal of Human Resources 46 (1), 26−52.
 Kim, Y. C. and G. Loury (2009), ”Group reputation and the dynamics of statistical discrimination,” mimeo, Brown University.
 Loury, G. (1977), ”A dynamic theory of racial income differences.” In Women, Minorities and Employment Discrimination, edited by P. Wallace and A. LaMond. Lexington: Lexington Books.
 Lundberg, S. and R. Startz (1983), ”Private discrimination and social intervention in competitive labor markets,” American Economic Review 73 (3), 340−47.
 Lundberg, S. and R. Startz (1998), ”On the persistence of racial inequality,” Journal of Labor Economics 16 (2), 292−323.
 Lundberg, S. and R. Startz (2007), ”Information and racial exclusion,” Journal of Population Economics 20 (3), 621−642.
 Moro, A. and P. Norman (2004), ”A general equilibrium model of statistical discrimination,” Journal of Economic Theory 114 (1) 1−30.
 Phelps, E. S. (1972), ”The statistical theory of racism and sexism,” American Economic Review 62(4), 659−61.
 Stoll, M., S. Raphael, and H. Holzer (2004), “Black job applicants and the hiring officer’s race,” Industrial and Labor Relations Review 57 (2), 267−87.
 Telles, E. (1993), “Urban labor market segmentation and income in Brazil,” Economic Development and Cultural Change 41 (2), 231−49.
 van de Walle, D. and D. Gunewardena (2001), “Sources of ethnic inequality in Viet Nam,” Journal of Development Economics 65, 177−207.
 Yuki, K. (2008), ”Sectoral shift, wealth distribution, and development,” Macroeconomic Dynamics 12 (4), 527−559.
 Yuki, K. (2009), ”Education, signaling, and wage inequality in a dynamic economy,” MPRA Paper 16982, University Library of Munich, Germany.
Available Versions of this Item
- Stereotypes, segregation, and ethnic inequality. (deposited 27. Jun 2012 23:22) [Currently Displayed]