Learning about inequality in unequal America: How heterogeneity in college shapes students’ beliefs about meritocracy and racial discrimination

As Western nations are increasingly divided by socioeconomic fault lines, how do we learn about the lives of others? Scholarship documents correlates of inequality beliefs but lacks a theoretical framework for studying belief formation. This paper develops an “institutional inference” model describing how adolescents learn about inequality in racially and socioeconomically homogeneous or heterogeneous institutional contexts. The latter expose them to structural sources of inequality that they cannot see in the former. Testing theoretical expectations on ten panels of US college students (n = 141,597), I find that: (1) beliefs about meritocracy and racial inequality change substantially in college, (2) the direction of change is shaped by experiences with same-race or different-race roommates, (3) the impact of which is strongest on campuses that otherwise provide limited exposure to heterogeneity. The inferential process that links institutions to beliefs may help explain why Americans have not rallied against inequality: when growing inequality produces socioeconomically homogeneous settings, people cannot experience its full extent.