An Economic Analysis of "Acting White"*
This paper formalizes a widely discussed peer eect entitled 'acting white'. 'Acting White'is modeled as a two audience signaling quandary: signals that induce high wages can be signals that induce peer group rejection. Without peer eects, equilibria involve all ability types choosing dierent levels of education. 'Acting White'alters the equilibrium dramatically: the (possibly empty) set of lowest ability individuals and the set of highest ability individuals continue to reveal their type through investments in education; ability types in the middle interval pool on a common education level. Only those in the lower intervals are accepted by the group. The model's predictions …t many stylized facts in the anthropology and sociology literatures regarding social interactions among minority group members.
- DOI
- 10.1162/0033553053970205
- Volume
- 120 (2)
- Pages
- 551-583
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref