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α: calibrated so average coauthorship-adjusted count equals average raw count
Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents’ investment in the trait and the social environment where children live. If a sufficiently high proportion of employers have taste-based prejudices against minority workers, we show that their prejudices are always self-fulfilled in steady state and minority workers end up having, on average, worse work habits than majority workers. This leads to a ghetto culture. Affirmative Action can improve the welfare of minorities whereas integration can be beneficial to minority workers but detrimental to workers from the majority group.