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Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University CAFO Working Papers, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University

No 2006:11:
Group Identity, Intergroup Bias, and Discrimination

Ali M. Ahmed ()

Abstract: This paper studies how group a±liation and intergroup bias may affect economic decision- making. Two types of experimental groupings are created and subjects are then paired with either an in-group member or an out-group member in a number of two-person games. The result of this experiment shows that out-group members face a risk of being discriminated against. The cause of the discrimination is not hostility toward out-group members; discrimination is triggered because of higher expectations or favoritism of in-group members. This type of behavior holds regardless of the grouping procedure.

Keywords: Discrimination; Intergroup bias; Group identity; Experiment; (follow links to similar papers)

JEL-Codes: C90; J70; (follow links to similar papers)

25 pages, October 8, 2006

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