Working Paper: CEPR ID: DP5908
Authors: Giacomo Corneo; Olivier Jeanne
Abstract: We develop an economic theory of tolerance where styles of behaviour are invested with symbolic value. Value systems are endogenous and taught by parents to their children. In conjunction with actual behaviour, value systems determine the esteem enjoyed by individuals. Intolerant individuals have all symbolic value invested in a single style of behaviour, whereas tolerant people have diversified values. The proposed model identifies a link between the unpredictability of children's lifestyles and tolerance. Under uncertainty, an open mind performs like an insurance against the risk of suffering a large loss in self-esteem when adult. From another angle, tolerance makes people capable of fully exploiting market opportunities. Sometimes, public policies in favour of tolerance can be recommended on efficiency grounds.
Keywords: modernity; occupational choice; symbolic values; tolerance
JEL Codes: D1; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental uncertainty about future material payoffs (D15) | Development of tolerance in children (J13) |
| Parental uncertainty about future lifestyles (D15) | Educating children towards tolerance (I24) |
| Educating children towards a diversified value system (I24) | Instilling tolerance (C90) |
| Higher uncertainty (D89) | Greater likelihood of tolerant attitudes being instilled (I24) |
| Predictability of children's future behaviors (J13) | Emergence of tolerance (F55) |
| Accurate prediction of future lifestyles (D15) | Investment in a single style of behavior (G11) |
| Investment in a single style of behavior (G11) | Development of intolerant attitudes (J15) |
| High uncertainty regarding income (D89) | Assignment of symbolic value to a range of occupations (J62) |
| Traditional societies with low mobility (J62) | Intolerance and predictability in occupational choices (J29) |