c. chiswick 1 economic determinants of ethnic assimilation by carmel u. chiswick university of...
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C. Chiswick 1
Economic Determinants of Ethnic Assimilation
by
Carmel U. ChiswickUniversity of Illinois at Chicago
and
IZA
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C. Chiswick 2
Ethnicity is different from Race or Ancestry
• Children raised in an ethnic environment (family, community) acquire ethnicity-specific human capital.
• Degree of attachment to an ethnic group is enhanced by investment in ethnicity-specific human capital.
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C. Chiswick 3
Ethnicity-Specific and Shared Human Capital
• Language• Religion• Family structure (marriage, childrearing)• Intellectual, cultural and social life• Preferences in food, music, art• Attitudes toward Individualism • Occupations • Political Interests (concerns, participation)
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C. Chiswick 4
Outline of Presentation
• An Economic Model of Ethnicity
• Two Concepts of Assimilation– Convergence– Pluralism
• External Economies, Diseconomies
• Some Policy Implications
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C. Chiswick 5
An Economic Model of Ethnicity• Ethnicity is a z-good with utility-
generating attributes.
• Ethnicity-specific human capital is acquired in the family and community, often at a very young age.
Assumption #1: Only 2 groups (Ethnicity A and Ethnicity B) with a shared General society and the possibility of switching.
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C. Chiswick 6
LE = Time spent on Ethnic activitiesLY = Time spent on other consumptionLES = Ethnic-specific education
(experience, socialization)LYS = General educationL* = total time constraint
hE = Ethnic-specific human capital hY = General human capital
Modeling Ethnic Education
Max Ui = U (E, Y) s.t. LE + LY + LES + LYS = L*
E = g(LE, hE)
Y = f(LY, hY )
LYS = φ (hY)
LES = γ (hE) - ω hE hY
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C. Chiswick 7
Derived Demand for Human Capital
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 8
Derived Demand for Ethnic Human Capital:Strong Preference for Ethnic Goods
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 9
Derived Demand for Ethnic Human Capital: Weak Preference for Ethnic Goods
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 10
Derived Demand for Ethnic Human Capital:No Externalities
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 11
Assumption #2: There is a threshold level of ethnic human capital hE* above which ethnic identity is strong and the propensity to converge is low.
Assimilation by Convergence• Assimilation defined as switching from a specific
ethnicity to the shared ethnicity. Often associated with intermarriage.
• Ethnic human capital is positively related to the productivity of ethnic identification.
– Non-transferability raises the cost of switching as hE increases.
• Assimilation depends on rate of return to switching.
Most likely to occur when hE < hE*
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C. Chiswick 12
Propensity to Assimilate by Convergence
Ethnic Human Capital
Shared Human Capital
hE*
Low Convergence
High Conver-gence
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C. Chiswick 13
Assimilation by Pluralism
• Mainstream culture accepts ethnic diversity.• Assimilation defined as participation in the
shared society (acculturation).
Assumption #3: There is a threshold level of shared human capital hY* above which people are acculturated into a common mainstream.
• Assimilation occurs for people with hY > hY*
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C. Chiswick 14
Propensity to Assimilate by Acculturation
Ethnic Human Capital
Shared Human Capital
hY*
High levels of Acculturation
Low levels of Acculturation
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C. Chiswick 15
Propensity to Assimilate: A General Model
Ethnic Human Capital
Shared Human Capital
hE*
Unacculturated Ethnics
ConvergenceZone
hY*
Acculturated Ethnics
Under-class?
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C. Chiswick 16
Education Externalities
• Negative interactions (ω < 0)– Ethnic values, attitudes, etc. conflict with the
larger society– Ethnic educational methods conflict with general
education
• Positive interactions (ω > 0)– Ethnic and shared values compatible– Ethnic and shared education mutually reinforcing
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C. Chiswick 17
Derived Demand for Ethnic Human Capital:Negative Externalities
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 18
Propensity to Assimilate:Negative Externalities
Ethnic Human Capital
Shared Human Capital
hY *
hE*
Acculturated Ethnics
Con-vergence Zone
Unacculturated EthnicsUnder-
class
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C. Chiswick 19
Derived Demand for Ethnic Human Capital:Positive Externalities
Ethnic Human Capital
Shared Human Capital
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C. Chiswick 20
Propensity to Assimilate:Positive Externalities
Ethnic Human Capital
Shared Human Capital
hY *
hE*
Unacculturated Ethnics
Con-vergence Zone
Acculturated Ethnics
Under-class
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C. Chiswick 21
Conclusions #1: Externalities in Education
• Positive externalities in education increase levels of acculturation without stressing convergence.– Raise rates of return to investment in both ethnic and
shared human capital.– Encourage mutual adaptations between shared and
ethnic-specific cultures.
• Negative externalities in education increase convergence (e.g., through intermarriage) but reduce the acculturation of ethnic groups.– Ethnic groups self-selected for low general education.
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C. Chiswick 22
Conclusions #2: Convergence vs. Pluralism
• Homogeneous societies discourage acculturation of ethnic groups. – When convergence defines assimilation, individuals are
forced to choose. – Ethnically identified individuals may be self-selected for low
acculturation and voluntary isolation. – Homogeneous model can justify “ethnic cleansing.”
• Pluralistic Societies encourage acculturation of ethnic groups.– Minimizes “problems” associated with ethnicity (raises ω)– Diversity can be a good in its own right. – Benefit from ethnicity-based comparative advantage
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End of Slide Show
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C. Chiswick 24
Intermarriage Propensities for Two Ethnic Groups
Shared Skills
Ethnic Skills Group A
Ethnic Skills Group B
hEB* hEA*
Low propensity to Intermarry
Low propensity to Intermarry
Intermarriage Zone
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C. Chiswick 25
Intermarriage Propensities for ω<0
Shared Skills
Ethnic Skills Group A
Ethnic Skills Group B
hEB* hEA*
Unacculturated Group A
Acculturated Intermarriage Zone
hY*
Unacculturated Group B
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C. Chiswick 26
Intermarriage Propensities for ω>0
Shared Skills
Ethnic Skills Group A
Ethnic Skills Group B
hEB* hEA*
Unacculturated Group A
Unacculturated Group B
hY*
Acculturated Intermarriage Zone