Collective wealth and group identity: insights from stratification economics
Informed by insights drawn from stratification economics and deploying dynamic game theory, we project the long-term outcome of racial/ethnic wealth disparities under multiple policy scenarios. At the core of the analysis is the character of investment individuals make in-group identity. The scenarios involve six regimes where color blindness is the norm, an equal opportunity principle is operative, the equal results principle prevails, strict apartheid is practiced, discrimination on the basis of phenotype is practiced, and a final scenario where reparations on behalf of the subordinate group have been implemented. Utilizing a series of simulation exercises, we explore the long-term outcomes on polarization, racialization, and wealth disparities under the reach of the scenarios.
