Abstract
Rational choice models based on methodological individualism have adequately explained the degree to which individuals from minority ethnic groups can reformulate their identities in order to take advantage of opportunities denied their group. But solving this problem has raised a new one. Marginal populations or stigmatized groups should disappear if identities were as plastic as rational theories have assumed. This article, relying on Schelling's “tipping game,” seeks to provide a rational choice basis to explain why marginal groups do not disappear as the macro outcome of a multitude of individual identity reformulations. A principal finding is that marginal groups persist to the extent that they are consigned to social roles that yield higher economic returns than an entry-level job would provide in the higher status economy. Empirical support comes from examinations of Gypsies and Jews in Europe, and untouchables in India.
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