Kim, Young Chul (2009): Group Reputation and the Endogenous Group Formation.
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Abstract
We develop a dynamic model that can explain identity switching activities among a stereotyped population, such as passing and selective out-migration, based on the group reputation model developed in Kim and Loury (2008). The more talented members of the population, who gain more by separating themselves from the masses, have a greater incentive to pass for an advantaged group with a higher collective reputation (incurring some cost of switching) or differentiate themselves by adopting the cultural traits of a better-off subgroup to send signals of their higher productivity to employers. We also show how an elite subgroup may grow autonomously out of the stereotyped population, when the most talented members adopt the cultural indices that are not affordable to other members of the population. Those cultural traits or indices are not necessarily relevant for productivity, but should be observable so that they can supplement the imperfect information about the workers' true productivity, as discussed in Fang (2001). We plan to merge this development with our previous work in Kim and Loury (2008) in the future.
Item Type: | MPRA Paper |
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Original Title: | Group Reputation and the Endogenous Group Formation |
Language: | English |
Keywords: | Endogenous Group Formation, Passing, Partial Passing, Social Elite, Group Reputation, Statistical Discrimination |
Subjects: | D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants ; Non-labor Discrimination J - Labor and Demographic Economics > J7 - Labor Discrimination > J70 - General |
Item ID: | 18575 |
Depositing User: | Young-Chul Kim |
Date Deposited: | 12 Nov 2009 17:39 |
Last Modified: | 02 Oct 2019 11:47 |
References: | Adsera, A and D. Ray (1998). "History and Coordination Failure,"Journal of Economic Growth 3: 267-276. Arrow, K.J. (1971). "Political and Economic Evaluation of Social Effects and Externalities,'' in Michael Intriligator (eds.), Frontiers of Quantitative Economics. Amsterdam: North-Holland: 841-877. Arrow, K.J. (1973). "The Theory of Discrimination," in Ashenfelter and Rees (eds.), Discrimination in Labor Markets. Bowles, S., G. C. Loury and R. Sethi (2007). "Group Inequality," Unpublished Manuscript, Barnard College, Columbia University. Card, D., A. Mas and J. Rothstein (2007). "Tipping and the Dynamics of Segregation,'' NBER working paper 13502. Chaudhuri, S. and R. Sethi (2008). "Statistical Discrimination with Peer Effects: Can Integration Eliminate Negative Stereotypes?" Review of Economic Studies 78: 579-596. Charles, Kerwin K., Erik Hurst and Nikolai Roussanov(2007). "Conspicuous Consumption and Race," Unpublished Manuscript. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/18575 |
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