Working Paper: CEPR ID: DP16830
Authors: Ryo Itoh; Yasuhiro Sato; Yves Zenou
Abstract: We develop a dynamic model of assimilation of ethnic minorities that posits a tradeoff between higher productivity and wages and greater social distance to the culture of origin. We also highlight the importance of the assimilation of the past generation and the role of the majority group in the assimilation of ethnic minorities. First, there is an inverted $U-$shaped relationship between the degree of tolerance of the majority individuals and the average level of assimilation in the society. Second, more tolerance from the majority group generates positive externalities for the minority group, while each minority's individual assimilation effort affects the welfare of the majority individuals differently depending on the initial minority assimilation level. Finally, the more the majority individuals are tolerant toward the minority group, the more the minority individuals will assimilate to the majority group, while the reverse is not always true. In fact, when there is too much assimilation, the majority group may reduce its degree of tolerance toward the majority group.
Keywords: identity; assimilation; social norms; group status dynamics; welfare; majority's acceptance
JEL Codes: J15; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| majority's tolerance (J15) | average level of assimilation (I24) |
| increased tolerance from the majority (J15) | minority assimilation outcomes (J15) |
| minority individuals' assimilation efforts (J15) | welfare of majority individuals (I31) |
| minority assimilation (J15) | majority's tolerance (J15) |