Discrimination and Assimilation Jon EGUIA University of Bristol Abstract This paper presents a theory of assimilation in a heterogeneous society composed of two groups with distinct social norms and unequal background. Members of the group with a relatively disadvantaged background face an incentive to assimilate, embracing the norms of the more advantaged group. The cost of assimilation is endogenous and strategically chosen by the advantaged group to screen those seeking to assimilate. In equilibrium, only highly skilled agents choose to assimilate. The theory provides a novel explanation of the so called « acting white » phenomenon, in which students from disadvantaged ethnic groups punish their coethnics who succeed academically. I show that punishing success and thus raising the cost of acquiring skills needed to assimilate is an optimal strategy by low ability students to keep their more able co-ethnics in the disadvantaged group. Monday, June 13, 2016 – 4:00 p.m. – Room b - 135 Center for Operations Research and Econometrics Voie du Roman Pays 34, 1348 Louvain-la-Neuve http://www.uclouvain.be/en-43677.html
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