Discussion Papers 2018

CIRJE-F-1104	"Assimilation Patterns in Cities"
Author Name	Sato, Yasuhiro and Yves Zenou
Date	December 2018
Full Paper	PDF File
Remarks	Subsequently published in European Economic Review 129, 103563 (2020)

Abstract
We develop a model in which ethnic minorities can either assimilate to the majority's norm or reject it by trading off higher productivity and wages with a greater social distance to their culture of origin. We show that "oppositional" minorities reside in more segregated areas, have worse outcomes (in terms of income) but are not necessary worse off in terms of welfare than assimilated minorities who live in less segregated areas. We nd that a policy that reduces transportation cost decreases rather than increases assimilation in cities. We also nd that when there are more productivity spillovers between the two groups, ethnic minorities are more likely not to assimilate and to reject the majority's norm. Finally, we show that ethnic minorities tend to assimilate more in bigger and more expensive cities.

Abstract

We develop a model in which ethnic minorities can either assimilate to the majority's norm or reject it by trading off higher productivity and wages with a greater social distance to their culture of origin. We show that "oppositional" minorities reside in more segregated areas, have worse outcomes (in terms of income) but are not necessary worse off in terms of welfare than assimilated minorities who live in less segregated areas. We nd that a policy that reduces transportation cost decreases rather than increases assimilation in cities. We also nd that when there are more productivity spillovers between the two groups, ethnic minorities are more likely not to assimilate and to reject the majority's norm. Finally, we show that ethnic minorities tend to assimilate more in bigger and more expensive cities.