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Cultural transmission and discrimination

Author

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  • Sáez-Martı´, Maria
  • Zenou, Yves
Abstract
Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents’ investment in the trait and the social environment where children live. If a sufficiently high proportion of employers have taste-based prejudices against minority workers, we show that their prejudices are always self-fulfilled in steady state and minority workers end up having, on average, worse work habits than majority workers. This leads to a ghetto culture. Affirmative Action can improve the welfare of minorities whereas integration can be beneficial to minority workers but detrimental to workers from the majority group.

Suggested Citation

  • Sáez-Martı´, Maria & Zenou, Yves, 2012. "Cultural transmission and discrimination," Journal of Urban Economics, Elsevier, vol. 72(2), pages 137-146.
    • Handle: RePEc:eee:juecon:v:72:y:2012:i:2:p:137-146
    DOI: 10.1016/j.jue.2012.04.005
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    More about this item

    Keywords

    Ghetto culture; Overlapping generations; Rational expectations; Multiple equilibria; Peer effects; Neighborhood effects;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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