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Occupational segregation in a Roy model with composition preferences

Haoning Chen, Miaomiao Dong, Marc Henry, Ivan Sidorov

arXiv 8 Dec 2020 · Theoretical Economics · publishedGames and Economic Behavior (2025) · 2 citations (OpenAlex)

arXiv:2012.04485 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a model of labor market sector self-selection that combines comparative advantage, as in the Roy model, and sector composition preference. Two groups choose between two sectors based on heterogeneous potential incomes and group compositions in each sector. Potential incomes incorporate group specific human capital accumulation and wage discrimination. Composition preferences are interpreted as reflecting group specific amenity preferences as well as homophily and aversion to minority status. We show that occupational segregation is amplified by the composition preferences and we highlight a resulting tension between redistribution and diversity. The model also exhibits tipping from extreme compositions to more balanced ones. Tipping occurs when a small nudge, associated with affirmative action, pushes the system to a very different equilibrium, and when the set of equilibria changes abruptly when a parameter governing the relative importance of pecuniary and composition preferences crosses a threshold.

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54
references
72
in-text mentions
54
distinct cited
0
self-citations
16,863
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1J. Pan (2015) Gender segregation in occupations: the role of tipping and social interactions0.87472100%
2T. Schelling (1971) Dynamic models of segregation0.87462100%
3T. Schelling (1973) Hockey helmets, concealed weapons, and daylight saving0.73732100%
4T. Schelling (1978) Micromotives and macrobehavior0.73732100%
5I. Mourifié, M. Henry, and R. Méango (2020) Sharp bounds and testability of a Roy model of STEM major choices0.64422100%
6T. Schelling (1969) Models of segregation0.64422100%
7D. Card, A. Mas, and J. Rothstein (2008) Tipping and the dynamics of segregation0.51121100%
8G. Akerlof and R. Kranton (2000) Economics and identity0.40511100%
9K. Arrow (1998) What has economics to say about racial discrimination?0.40511100%
10M. Bertrand, S. Black, S. Jensen, and A. Lleras-Muney (2019) Breaking the glass ceiling? the effect of board quotas on female labour market outcomes in Norway0.40511100%

Showing the top 10 of 54 scored citations.