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Social inference and occupational choice: Type-based beliefs in a Bayesian model of class formation

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  • Oxoby, Robert J.

Abstract

Beliefs are a key motivator of individual behavior. As such, an understanding of how individuals’ beliefs develop is a prerequisite to understanding decision-making and behavior. While rational choice theory posits a Bayesian framework for belief formation, status construction theories argue that beliefs are strongly influenced by status typifications. In this paper, we develop a Bayesian model of belief formation in which individuals use (irrelevant) information on others’ observable type to bias their beliefs. This model is used to analyze a simple occupational choice setting, thereby shedding light on the micro–macro inter-relationship between observable type (e.g. race, gender) and social class.

Suggested Citation

  • Oxoby, Robert J., 2014. "Social inference and occupational choice: Type-based beliefs in a Bayesian model of class formation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 30-37.
    • Handle: RePEc:eee:soceco:v:51:y:2014:i:c:p:30-37
    DOI: 10.1016/j.socec.2014.04.001
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    References listed on IDEAS

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    Cited by:

    1. Atsuko Tanaka, "undated". "Estimation of the Effects of Statistical Discrimination on the Gender Wage Gap," Working Papers 2015-22, Department of Economics, University of Calgary, revised 21 Dec 2015.
    2. Kugler, Adriana & Tinsley, Catherine H. & Ukhaneva, Olga, 2017. "Choice of Majors: Are Women Really Different from Men?," IZA Discussion Papers 10947, Institute of Labor Economics (IZA).
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    4. Kugler, Adriana D. & Tinsley, Catherine H. & Ukhaneva, Olga, 2021. "Choice of majors: are women really different from men?," Economics of Education Review, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Social inference; Occupational choice; Discrimination;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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