In this paper we analyze the coevolution of segregation into private and state schools, beliefs about the educational merits of different schools, and labor market discrimination. In a dynamic model, we characterize a necessary and sufficient condition on initial levels of segregation and beliefs under which full polarization of beliefs and long-run labor market discrimination are sustainable. The model suggests a new perspective on the long-term effects of different policy interventions, such as integration, school vouchers and policies that are directly targeted toward influencing beliefs.
Levy, Gilat, and Ronny Razin.
"The Coevolution of Segregation, Polarized Beliefs, and Discrimination: The Case of Private versus State Education."
American Economic Journal: Microeconomics,
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
State and Local Government: Health; Education; Welfare; Public Pensions
Analysis of Education
Education and Inequality
Education: Government Policy