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on Collective Decision-Making |
| By: | Dripto Bakshi; Indraneel Dasgupta |
| Abstract: | We examine how inequality in the endowment of secure wealth, mediated through voluntary public communities, each internally differentiated into rich, intermediate and poor segments, contest one another for the division of some rent. Any rent accruing to a community is distributed internally according to another, simultaneous, contest. Individuals first decide how much of their endowments to allocate to the two contests. They subsequently decide how to allocate their remaining wealth and rental income between private consumption and a community-specific public good. We find that greater endowment inequality among the non-rich, both within and across communities, aggravates inter-group rent-seeking. Within-group rent-seeking may rise as well. In contrast, higher such inequality between the rich and others within a community depresses between-group conflict. Within group conflict may fall as well. The ‘paradox of power’ is violated for both kinds of conflict – better endowed individuals are more successful in the internal conflict, while better-endowed groups are more successful in the external conflict. |
| Keywords: | Internal vs. external rent-seeking, Ethnic conflict, Intra-group inequality, Inter-group |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:not:notcre:21/06&r= |
| By: | Sihua Ding; Marcin Dziubiński; Sanjeev Goyal (Division of Social Science) |
| Abstract: | A recurring theme in the study of society is the concentration of influence and power that is driven through unequal membership of groups and associations. In some instances these bodies constitute a small world while in others they are fragmented into distinct cliques. This paper presents a new model of clubs and networks to understand the sources of individual marginalization and the origins of different club networks. In our model, individuals seek to become members of clubs while clubs wish to have members. Club value is increasing in its size and in the strength of ties with other clubs. We show that a stable membership proï¬ le exhibits marginalization of individuals and that this is generally not welfare maximizing. Our second result shows that if returns from strength of ties are convex (concave) then stable memberships support fragmented networks with strong ties (small worlds held together by weak ties). We illustrate the value of these theoretical results through case studies of inter-locking directorates, boards of editors of journals, and defence and R&D alliances. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:nad:wpaper:20210073&r= |
| By: | Jiwon Choi; Ilyana Kuziemko; Ebonya L. Washington; Gavin Wright |
| Abstract: | Why have white, less educated voters left the Democratic Party over the past few decades? Scholars have proposed ethnocentrism, social issues and deindustrialization as potential answers. We highlight the role played by the 1994 North American Free Trade Agreement (NAFTA). In event-study analysis, we demonstrate that counties whose 1990 employment depended on industries vulnerable to NAFTA suffered large and persistent employment losses relative to other counties. These losses begin in the mid-1990s and are only modestly offset by transfer programs. While exposed counties historically voted Democratic, in the mid-1990s they turn away from the party of the president (Bill Clinton) who ushered in the agreement and by 2000 vote majority Republican in House elections. Employing a variety of micro-data sources, including 1992-1994 respondent-level panel data, we show that protectionist views predict movement toward the GOP in the years that NAFTA is debated and implemented. This shift among protectionist respondents is larger for whites (especially men and those without a college degree) and those with conservative social views, suggesting an interactive effect whereby racial identity and social-issue positions mediate reactions to economic policies. |
| JEL: | D72 F16 H5 J2 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29525&r= |
| By: | Samuel Bazzi; Andreas Ferrara; Martin Fiszbein; Thomas P. Pearson; Patrick A. Testa |
| Abstract: | This paper provides a novel perspective on the Great Migration out of the U.S. South. Using a shift-share identification strategy, we show how millions of Southern white migrants transformed the cultural and political landscape across America. Counties with a larger Southern white share by 1940 exhibited growing support for right-wing politics throughout the 20th century and beyond. Racial animus, religious conservatism, and localist attitudes among the Southern white diaspora hastened partisan realignment as the Republican Party found fresh support for the Southern strategy outside the South. Their congressional representatives were more likely to oppose politically liberal legislation, such as the Civil Rights Act of 1964, and to object to the Electoral College count in 2021. These migrants helped shape institutions that reinforced racial inequity and exclusion, they shared ideology through religious organizations and popular media, and they transmitted an array of cultural norms to non-Southern populations. Together, our findings suggest that Southern white migrants may have forever changed the trajectory of American politics. |
| JEL: | D72 J15 J18 N32 P16 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29506&r= |
| By: | Giovanni Facchini; Timothy J. Hatton; Max F. Steinhardt |
| Abstract: | The Immigration Act of 1965 marked a dramatic shift in policy and one with major long term consequences for the volume and composition of immigration to the United States. Here we explore the political economy of a reform that has been overshadowed by the Civil Rights and Great Society programs. We find that public opinion was against expanding immigration, but it was more favorable to abolishing the old country of origin quota system. Votes in the House of Representatives and the Senate were more closely linked to opinion on abolishing the country of origin quotas than to public opinion on the volume of immigration. Support for immigration reform initially followed in the slipstream of civil rights legislation both among members of Congress and their constituents. The final House vote, on a more restrictive version of the bill, was instead more detached from state-level public opinion on civil rights and gained more support from those whose constituents wanted to see immigration decreased. |
| Keywords: | US immigration policy, 1965 Immigration Act, Congressional voting |
| JEL: | N12 F22 J68 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:auu:hpaper:099&r= |