Economists have developed theoretical models identifying self-fulfilling expectations as an important source of statistical discrimination practices in labor markets (Arrow, 1973). The static models dominating the literature of statistical discrimination, however, may leave the false impression...

Previous studies find that some social groups are stuck in poverty traps because of network effects. However, these studies do not carefully analyze how these groups overcome low human capital investment activities. Unlike previous studies, the model in this paper includes network externalities...

As private education becomes widespread over the last decade in South Korea, the education gap among regions and social classes, noticeably widens. The recent global financial crisis exacerbates the problem as the rich continues to utilize more private education while the poor utilizes it less....