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 that rational choice theory identifies (—poverty, exclusion by law or force, taste-based or statistical discrimination, and externalities from soci...

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Main Authors:	Hoff, Karla, Walsh, James
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2019
Subjects:	BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING SOCIAL EXCLUSION
Online Access:	http://hdl.handle.net/10986/32173

id	okr-10986-32173
recordtype	oai_dc
spelling	okr-10986-321732021-05-25T10:54:42Z The Whys of Social Exclusion : Insights from Behavioral Economics Hoff, Karla Walsh, James BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING SOCIAL EXCLUSION All over the world, people are prevented from participating fully in society through mechanisms that go beyond the structural and institutional barriers that rational choice theory identifies (—poverty, exclusion by law or force, taste-based or statistical discrimination, and externalities from social networks differentiated by socioeconomic status). This paper discusses four additional mechanisms that can be explained by bounded rationality: (a) implicit discrimination, (b) self-stereotyping and self-censorship, (c) rules of thumb adapted to disadvantaged environments that are dysfunctional in more privileged settings, and (d) “adaptive preferences,” in which an excluded group comes to view its exclusion as natural. Institutions, if they are stable, come to have cognitive foundations---concepts, categories, social identities, and worldviews---through which people mediate their perceptions of themselves and the world around them. Abolishing or reforming a discriminatory institution may have little effect on the social categories it created; groups previously discriminated against by law may remain excluded through custom and habits of the mind. Recognizing new forces of social exclusion, behavioral economics identifies ways to offset them. Some interventions have had very consequential impacts. 2019-08-05T19:28:54Z 2019-08-05T19:28:54Z 2018-02-01 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/32173 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING SOCIAL EXCLUSION
spellingShingle	BEHAVIORAL ECONOMICS CULTURE IMPLICIT DISCRIMINATION STEREOTYPE PSYCHOLOGY DECISION-MAKING SOCIAL EXCLUSION Hoff, Karla Walsh, James The Whys of Social Exclusion : Insights from Behavioral Economics
description	All over the world, people are prevented from participating fully in society through mechanisms that go beyond the structural and institutional barriers that rational choice theory identifies (—poverty, exclusion by law or force, taste-based or statistical discrimination, and externalities from social networks differentiated by socioeconomic status). This paper discusses four additional mechanisms that can be explained by bounded rationality: (a) implicit discrimination, (b) self-stereotyping and self-censorship, (c) rules of thumb adapted to disadvantaged environments that are dysfunctional in more privileged settings, and (d) “adaptive preferences,” in which an excluded group comes to view its exclusion as natural. Institutions, if they are stable, come to have cognitive foundations---concepts, categories, social identities, and worldviews---through which people mediate their perceptions of themselves and the world around them. Abolishing or reforming a discriminatory institution may have little effect on the social categories it created; groups previously discriminated against by law may remain excluded through custom and habits of the mind. Recognizing new forces of social exclusion, behavioral economics identifies ways to offset them. Some interventions have had very consequential impacts.
format	Journal Article
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	Published by Oxford University Press on behalf of the World Bank
publishDate	2019
url	http://hdl.handle.net/10986/32173
_version_	1764475955598852096

The Whys of Social Exclusion : Insights from Behavioral Economics

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