The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education

Gilat Levy and Ronny Razin

American Economic Journal: Microeconomics, 2017, vol. 9, issue 4, 141-70

Abstract: In this paper we analyze the coevolution of segregation into private and state schools, beliefs about the educational merits of different schools, and labor market discrimination. In a dynamic model, we characterize a necessary and sufficient condition on initial levels of segregation and beliefs under which full polarization of beliefs and long-run labor market discrimination are sustainable. The model suggests a new perspective on the long-term effects of different policy interventions, such as integration, school vouchers and policies that are directly targeted toward influencing beliefs.

JEL-codes: D83 H75 I21 I24 I28 J71 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/mic.20160201
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Citations: View citations in EconPapers (10)

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Working Paper: The coevolution of segregation, polarized beliefs and discrimination: the case of private versus state education (2017)
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