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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | Cultural transmission and discrimination |
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| Institution | University of Zurich |
| Series Name | Working paper series / Institute for Empirical Research in Economics |
| Number | 348 |
| ISSN | 1424-0459 |
| Number of Pages | 27 |
| Date | 2012 |
| Abstract Text | 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. We show that if a sufficiently high proportion of employers have taste-based prejudices against minority workers, 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. |
| Official URL | http://www.iew.unizh.ch/wp/iewwp348.pdf |
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| Keywords | Ghetto culture, overlapping generations, rational expectations, multiple equilibria, peer effects |
| Additional Information | Revised version |