Conformism, Social Norms and the Dynamics of Assimilation

81 Pages Posted: 12 Apr 2018

See all articles by Gonzalo Olcina

Gonzalo Olcina

University of Valencia

Fabrizio Panebianco

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS); Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Yves Zenou

Monash University - Department of Economics; Stockholm University; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

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Abstract

We consider a model where each individual (or ethnic minority) is embedded in a network of relation-ships and decides whether or not she wants to be assimilated to the majority norm. Each individual wants her behavior to agree with her personal ideal action or norm but also wants her behavior to be as close as possible to the average assimilation behavior of her peers. We show that there is always convergence to a steady-state and characterize it. We also show that different assimilation norms may emerge in steady state depending on the structure of the network. We then consider the role of cultural and government leaders in the assimilation process of ethnic minorities and an optimal tax/subsidy policy which aim is to reach a certain level of assimilation in the population.

Keywords: assimilation, networks, social norms, peer pressure, cultural leader

JEL Classification: D83, D85, J15, Z13

Suggested Citation

Olcina, Gonzalo and Panebianco, Fabrizio and Zenou, Yves, Conformism, Social Norms and the Dynamics of Assimilation. IZA Discussion Paper No. 11436. Available at SSRN: https://ssrn.com/abstract=3158141

Gonzalo Olcina (Contact Author)

University of Valencia

Avda. de los Naranjos s/n
Valencia, Valencia E-46022
Spain

Fabrizio Panebianco

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Yves Zenou

Monash University - Department of Economics ( email )

Australia

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Research Institute of Industrial Economics (IUI) ( email )

P.O. Box 5501
S-114 85 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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