The Whys of Social Exclusion : Insights from Behavioral Economics
All over the world, people are prevented from participating fully in society through mechanisms that go beyond the structural and institutional barriers identified by rational choice theory (poverty, exclusion by law or force, taste-based and stati...
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/637511513001943873/The-whys-of-social-exclusion-insights-from-behavioral-economics http://hdl.handle.net/10986/29003 |
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okr-10986-290032021-06-08T14:42:47Z The Whys of Social Exclusion : Insights from Behavioral Economics Hoff, Karla Walsh, James BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING All over the world, people are prevented from participating fully in society through mechanisms that go beyond the structural and institutional barriers identified by rational choice theory (poverty, exclusion by law or force, taste-based and statistical discrimination, and externalities from social networks). This essay discusses four additional mechanisms that bounded rationality can explain: (i) implicit discrimination, (ii) self-stereotyping and self-censorship, (iii) “fast thinking” adapted to underclass neighborhoods, and (iv) "adaptive preferences" in which an oppressed group views its oppression as natural or even preferred. Stable institutions have cognitive foundations -- concepts, categories, social identities, and worldviews -- that function like lenses through which individuals see themselves and the world. Abolishing or reforming a discriminatory institution may have little effect on these lenses. Groups previously discriminated against by law or policy may remain excluded through habits of the mind. Behavioral economics recognizes forces of social exclusion left out of rational choice theory, and identifies ways to overcome them. Some interventions have had very consequential impact. 2017-12-15T16:29:29Z 2017-12-15T16:29:29Z 2017-12 Working Paper http://documents.worldbank.org/curated/en/637511513001943873/The-whys-of-social-exclusion-insights-from-behavioral-economics http://hdl.handle.net/10986/29003 English Policy Research Working Paper;No. 8267 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING |
| spellingShingle |
BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING Hoff, Karla Walsh, James The Whys of Social Exclusion : Insights from Behavioral Economics |
| relation |
Policy Research Working Paper;No. 8267 |
| description |
All over the world, people are prevented
from participating fully in society through mechanisms that
go beyond the structural and institutional barriers
identified by rational choice theory (poverty, exclusion by
law or force, taste-based and statistical discrimination,
and externalities from social networks). This essay
discusses four additional mechanisms that bounded
rationality can explain: (i) implicit discrimination, (ii)
self-stereotyping and self-censorship, (iii) “fast thinking”
adapted to underclass neighborhoods, and (iv) "adaptive
preferences" in which an oppressed group views its
oppression as natural or even preferred. Stable institutions
have cognitive foundations -- concepts, categories, social
identities, and worldviews -- that function like lenses
through which individuals see themselves and the world.
Abolishing or reforming a discriminatory institution may
have little effect on these lenses. Groups previously
discriminated against by law or policy may remain excluded
through habits of the mind. Behavioral economics recognizes
forces of social exclusion left out of rational choice
theory, and identifies ways to overcome them. Some
interventions have had very consequential impact. |
| format |
Working Paper |
| author |
Hoff, Karla Walsh, James |
| author_facet |
Hoff, Karla Walsh, James |
| author_sort |
Hoff, Karla |
| title |
The Whys of Social Exclusion : Insights from Behavioral Economics |
| title_short |
The Whys of Social Exclusion : Insights from Behavioral Economics |
| title_full |
The Whys of Social Exclusion : Insights from Behavioral Economics |
| title_fullStr |
The Whys of Social Exclusion : Insights from Behavioral Economics |
| title_full_unstemmed |
The Whys of Social Exclusion : Insights from Behavioral Economics |
| title_sort |
whys of social exclusion : insights from behavioral economics |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/637511513001943873/The-whys-of-social-exclusion-insights-from-behavioral-economics http://hdl.handle.net/10986/29003 |
| _version_ |
1764468244855390208 |