Minorities and Majorities: A Dynamic Model of Assimilation

22 Pages Posted: 30 Nov 2005

See all articles by István Kónya

István Kónya

Magyar Nemzeti Bank - Economics & Research Department

Abstract

The paper analyses the population dynamics of a country that has two ethnic groups, a minority and a majority, and minority members can choose to assimilate into the majority. Depending on the minority's size, the long-run outcome can be full or no assimilation. Under certain parameter values multiple equilibria exist, including the two extreme cases. The paper demonstrates that both the long-run outcome and the equilibrium path may be inefficient. Two extensions to the basic model are considered. The first one allows for a comparison between a multicultural and a 'melting pot' society. The second one introduces population growth and studies the interplay between exogenous and endogenous changes in the minority's size.

JEL Classification: J110, J150, J180

Suggested Citation

Konya, Istvan, Minorities and Majorities: A Dynamic Model of Assimilation. Canadian Journal of Economics, Vol. 38, No. 4, pp. 1431-1452, November 2005. Available at SSRN: https://ssrn.com/abstract=856643 or http://dx.doi.org/10.1111/j.0008-4085.2005.00331.x

Istvan Konya (Contact Author)

Magyar Nemzeti Bank - Economics & Research Department ( email )

H-1850 Budapest
Hungary

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