Emergent Segregation through Homophilic Imitation: The Case of School Choice

Abstract

Segregation by ethnicity, income and other factors still continues in many areas of life. Its prevalence is usually explained by some variation of Schelling's preference-based segregation model. Here we suggest and test a different individual-level mechanism that potentially generates emergent segregation: homophilic imitation. We assume that people tend to mimic choices of those similar to them. We study this mechanism in the context of school choice. To test our hypothesis we use a model of social decision making that describes how individuals estimate the quality of potential choices from the observed actions of others, and how these estimates can be used to predict further actions. Using methods of Bayesian inference, along with individual-level school choices extracted from Norwegian government register data, we establish how homophily influences choice imitation behaviour, particularly in the context of free school choice policy, which then contributes to segregation.