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Intergenerational assimilation of minorities: The role of the majority group

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  • Itoh, Ryo
  • Sato, Yasuhiro
  • Zenou, Yves

Abstract

We develop a dynamic model of assimilation of ethnic minorities that posits a trade-off between higher productivity and wages and greater social distance from the culture of origin. We primarily highlight the importance of the intergenerational linkage of assimilation and also incorporate the role of the majority group in the assimilation of ethnic minorities. We first show how the assimilation of the past generation is transmitted to the subsequent generation, and then characterize the intragenerational and intergenerational externalities. Moreover, we explore the interaction of the minority and majority decisions, which accompanies a hump-shaped relationship between the act to tolerate of the majority individuals and the level of assimilation in the society. Such a relationship is also transmitted via intergenerational linkage and causes additional externalities. In fact, more tolerance from the majority group generates positive externalities for the minority group, while each minority group’s assimilation effort affects the welfare of the majority individuals differently depending on the initial minority assimilation level.

Suggested Citation

  • Itoh, Ryo & Sato, Yasuhiro & Zenou, Yves, 2024. "Intergenerational assimilation of minorities: The role of the majority group," European Economic Review, Elsevier, vol. 164(C).
  • Handle: RePEc:eee:eecrev:v:164:y:2024:i:c:s0014292124000515
    DOI: 10.1016/j.euroecorev.2024.104722
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    More about this item

    Keywords

    Identity; Social norms; Group status; Welfare; Majority’s acceptance; Transmission of tolerance;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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