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Multidimensional Social Identities and Choice Behavior: The Pitfalls and Opportunities

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  • Liqui-Lung, C.

Abstract

Diversity is a widely pursued objective, yet current approaches often fall short or even backfire. This paper argues that treating the underrepresentation of groups such as women and ethnic minorities as separate issues oversimplifies the problem. I formally analyze how multi-dimensional social identities and social context interact to shape confidence and participation decisions. I show how “optimal social identification" allows agents to flexibly interpret social data to improve decision-making outcomes. However, different options to use this tool can create persistent disparities in task participation and outcomes. The framework enables a general equilibrium analysis of the interaction between social context, social identification, and task allocation. I show how one-dimensional policies, such as those focused solely on gender, neglect externalities and within-trait differences, and can have negative welfare effects. Instead, I advocate for multidimensional quotas with informational policies that nudge individuals to consider alternative traits and statistics. These interventions balance individual benefits with aggregate welfare concerns, reducing disparities while empowering individuals to reach their full potential.

Suggested Citation

  • Liqui-Lung, C., 2023. "Multidimensional Social Identities and Choice Behavior: The Pitfalls and Opportunities," Cambridge Working Papers in Economics 2379, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2379
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    References listed on IDEAS

    as
    1. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    2. Guilhem Cassan, 2015. "Identity-Based Policies and Identity Manipulation: Evidence from Colonial Punjab," American Economic Journal: Economic Policy, American Economic Association, vol. 7(4), pages 103-131, November.
    3. David Atkin & Eve Colson-Sihra & Moses Shayo, 2021. "How Do We Choose Our Identity? A Revealed Preference Approach Using Food Consumption," Journal of Political Economy, University of Chicago Press, vol. 129(4), pages 1193-1251.
    4. Liqui Lung, C. W., 2022. "Optimal Self-Screening and the Persistence of Identity-Driven Choices," Janeway Institute Working Papers 2232, Faculty of Economics, University of Cambridge.
    5. Liqui Lung, C. W., 2022. "Optimal Self-Screening and the Persistence of Identity-Driven Choices," Cambridge Working Papers in Economics 2274, Faculty of Economics, University of Cambridge.
    6. Ruixue Jia & Torsten Persson, 2019. "Individual vs. Social Motives in Identity Choice: Theory and Evidence from China," NBER Working Papers 26008, National Bureau of Economic Research, Inc.
    7. Varun Karekurve‐Ramachandra & Alexander Lee, 2020. "Do Gender Quotas Hurt Less Privileged Groups? Evidence from India," American Journal of Political Science, John Wiley & Sons, vol. 64(4), pages 757-772, October.
    8. Shayo, Moses, 2009. "A Model of Social Identity with an Application to Political Economy: Nation, Class, and Redistribution," American Political Science Review, Cambridge University Press, vol. 103(2), pages 147-174, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bounded Rationality; Social Identity; Choice Behavior; Diversity;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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