Department of Economics pres.
Social, Behavioral & Experimental Economics (SBEE): Identity and Underrepresentation: Interactions between Race and Gender (with Bary Pradelski)
Jean-Paul Carvalho, University of California, Irvine
Economic outcomes vary significantly across socio-demographic groups. In a model
of multi-dimensional identity, we show how economic underrepresentation can evolve
through identity-specific norms. Whereas standard approaches treat identity dimensions as independent, our analysis reveals deep connections between inequality and underrepresentation based on race, gender and other characteristics. `Sterilized interventions' along a single identity dimension are impossible. Interventions that aim to reduce underrepresentation along one identity dimension can increase underrepresentation along another. We show how underrepresentation can be eliminated along every dimension, through a system of (a) self-financing subsidies or (b) role models, where interventions are connected across identity dimensions.
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