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To be, or not to be: Stereotypes, identity choice and group inequality

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  • Kim, Young-Chul
  • Loury, Glenn C.

Abstract

We extend a model of ‘stereotyping’ by allowing agents to exert control over their perceived identities. The logic of individuals' identity choices induces a positive selection of the more talented individuals into a group with a superior reputation. Thus, the inequality deriving from the stereotyping of endogenously constructed groups can be greater than the inequality that can emerge when perceived identity is not malleable. Moreover, when identity manipulation is sufficiently easier to undertake, an equality across social groups may not be achievable even with strong egalitarian interventions. Among the human behaviors illuminated by this theory are: (1) the selective out-migration from a stigmatized group and (2) the production of the indices of differentiation by better-off members of the negatively stereotyped group. We also examine the welfare implications of these identity manipulation activities.

Suggested Citation

  • Kim, Young-Chul & Loury, Glenn C., 2019. "To be, or not to be: Stereotypes, identity choice and group inequality," Journal of Public Economics, Elsevier, vol. 174(C), pages 36-52.
    • Handle: RePEc:eee:pubeco:v:174:y:2019:i:c:p:36-52
    DOI: 10.1016/j.jpubeco.2019.01.009
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    References listed on IDEAS

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    Cited by:

    1. John W. Patty & Elizabeth Maggie Penn, 2022. "Ban The Box? Information, Incentives, and Statistical Discrimination," Papers 2208.08348, arXiv.org.
    2. Sam‐Ho Lee, 2023. "Theory of cultural capital: Productive use of an unproductive activity," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(2), pages 359-375, April.
    3. Olcina, Gonzalo & Panebianco, Fabrizio & Zenou, Yves, 2024. "Conformism, social pressure, and the dynamics of integration," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 279-304.
    4. J. Mark Ramseyer, 2021. "Social capital and the problem of opportunistic leadership: the example of Koreans in Japan," European Journal of Law and Economics, Springer, vol. 52(1), pages 1-32, August.
    5. Itoh, Ryo & Sato, Yasuhiro & Zenou, Yves, 2024. "Intergenerational assimilation of minorities: The role of the majority group," European Economic Review, Elsevier, vol. 164(C).
    6. Zenou, Yves & Itoh, Ryo & Sato, Yasuhiro, 2021. "Intergenerational Assimilation of Minorities: The Role of the Majority Group," CEPR Discussion Papers 16830, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Stereotypes; Identity choice; Group inequality; Passing;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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