published in: Journal of Population Economics, 2006, 19 (2), 327-344
Minorities, such as ethnic and immigration groups, have often been subject to exclusion
through labor market discrimination, residential and employment segregation policies,
business ownership regulations, restrictions on political participation, access to public
services and more. This paper studies the dynamics of minority exclusion. From the
viewpoint of the dominant majority, the exclusion decision balances the motive to redistribute
income in its favor and the interest in avoiding potential civic unrest or even violent
confrontation with the minority by allowing inclusion of some of its members. The analysis
also has implications for immigration policies which have to take this group dynamics into
account.
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