Preliminary and incomplete—do not circulate, quote or cite

Abstract

We develop a model in which individuals choose education to improve their earnings and regulate the cultural traits they acquire via social transmission. When education makes individuals more receptive to mainstream culture, minority groups underinvest in education as a form of cultural resistance. Economic and cultural incentives interact in surprising ways that increase income inequality. An increase in the skill premium induces low-ability minority types to reduce education—a phenomenon we call resisting education. The model links technological progress, globalization and anti-discrimination policies (e.g. affirmative action, Jewish emancipation) to oppositional attitudes toward education.