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Identity change and economic mobility: Experimental evidence

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  • Muñoz, Manuel

Abstract

I study the impact identity change (assimilation) has on economic mobility. I experimentally assign people to different group identities, majority or minority, before they interact in a social coordination setting. In equilibrium, minority assimilators achieve economic mobility by integrating with the majority. In the experiment, assimilators are discriminated against and cannot integrate, if majority members encounter conformists (non-assimilators) in the minority. Thus, assimilators fail to attain economic mobility because those who maintain the status quo impose negative externalities on those who risk changing it.

Suggested Citation

  • Muñoz, Manuel, 2024. "Identity change and economic mobility: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 145(C), pages 493-509.
  • Handle: RePEc:eee:gamebe:v:145:y:2024:i:c:p:493-509
    DOI: 10.1016/j.geb.2024.04.004
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    References listed on IDEAS

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    More about this item

    Keywords

    Identity choice; Assimilation; Networks; Coordination; Inter-group contact;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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