We advance a novel choice-theoretic model of “identity” based on the notions of categories and narratives. Identity is conceived as a matter of “reflexive perception” — how people understand themselves. Choosing an identity is equivalent to making a generalization about one’s past...

As private education has become widespread over the last decade in South Korea, the education gap among regions and social classes has noticeably widened. The recent global financial crisis exacerbates the problem as the rich continue to utilize more private education, while the poor utilize it...

We explore the combined effect of segregation in social networks, peer effects, and the relative size of a historically disadvantaged group on the incentives to invest in market-rewarded skills and the dynamics of inequality between social groups. We identify conditions under which group...