Skip to main content
SpringerLink
Log in

Group Identity, Ingroup Favoritism, and Discrimination

  • Living reference work entry
  • First Online:
Handbook of Labor, Human Resources and Population Economics

Abstract

This chapter surveys the literature of the past 20 years on group identity and intergroup bias which serve as important underpinnings for labor market discrimination. Main economic domains are identified in which the literature has shown the important influences of group identity. With exceptions, group identity leads to ingroup favoritism and outgroup discrimination in these domains. While minimal groups are found inadequate to generate a salient group identity to influence decision-making in strategic settings, minimal group identity can nonetheless be strengthened and, as a result, affect choices in broad economic settings. The presence and magnitude of intergroup discrimination in artificially induced or naturally occurring groups exhibit substantial heterogeneity across individuals and are dependent on a broad range of economic, cultural, and political factors. Preference- and belief-based mechanisms are both important drivers of intergroup discrimination.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Abbink K, Brandts J, Herrmann B, Orzen H (2010) Intergroup conflict and intra-group punishment in an experimental contest game. Am Econ Rev 100(1):420–447

    Article  Google Scholar 

  • Abbink K, Brandts J, Herrmann B, Orzen H (2012) Parochial altruism in inter-group conflicts. Econ Lett 117(1):45–48

    Article  Google Scholar 

  • Abdelal R, Herrera YM, Johnston AI, McDermott R (eds) (2009) Measuring identity: a guide for social scientists. Cambridge University Press, Cambridge

    Google Scholar 

  • Akerlof R (2016) “We thinking” and its consequences. Am Econ Rev 106(5):415–419

    Article  Google Scholar 

  • Akerlof GA, Kranton RE (2000) Economics and identity. Q J Econ 115(3):715–753

    Article  Google Scholar 

  • Akerlof GA, Kranton RE (2002) Identity and schooling: some lessons for the economics of education. J Econ Lit 40(4):1167–1201

    Article  Google Scholar 

  • Akerlof GA, Kranton RE (2005) Identity and the economics of organizations. J Econ Perspect 19(1):9–32

    Article  Google Scholar 

  • Akerlof GA, Kranton RE (2010) Identity economics: how our identities shape our work, wages, and wellbeing. Princeton University Press, Princeton

    Book  Google Scholar 

  • Aksoy O (2015) Effects of heterogeneity and homophily on cooperation. Soc Psychol Q 78(4):324–344

    Article  Google Scholar 

  • Aksoy B, Palma MA (2019) The effects of scarcity on cheating and in-group favoritism. J Econ Behav Organ 165:100–117

    Article  Google Scholar 

  • Alt M, Gallier C, Schlüter A, Nelson K, Anggraini E (2018) Giving to versus taking from in-and out-group members. Games 9(3):57

    Article  Google Scholar 

  • Andersson O, Huysentruyt M, Miettinen T, Stephan U (2016) Person-organization fit and incentives: a causal test. Manag Sci 63(1):73–96

    Article  Google Scholar 

  • Angerer S, Glätzle-Rützler D, Lergetporer P, Sutter M (2016) Cooperation and discrimination within and across language borders: evidence from children in a bilingual city. Eur Econ Rev 90:254–264

    Article  Google Scholar 

  • Angerer S, Dutcher EG, Glätzle-Rützler D, Lergetporer P, Sutter M (2017) Gender differences in discrimination emerge early in life: evidence from primary school children in a bilingual city. Econ Lett 152:15–18

    Article  Google Scholar 

  • Attanasi G, Hopfensitz A, Lorini E, Moisan F (2016) Social connectedness improves co-ordination on individually costly efficient outcomes. Eur Econ Rev 90:86–106

    Article  Google Scholar 

  • Balliet D, Wu J, De Dreu CK (2014) Ingroup favoritism in cooperation: a meta-analysis. Psychol Bull 140(6):1556

    Article  Google Scholar 

  • Banerjee R, Gupta ND, Villeval MC (2018) The spillover effects of affirmative action on competitiveness and unethical behavior. Eur Econ Rev 101:567–604

    Article  Google Scholar 

  • Bargh JA (2006) What have we been priming all these years? On the development, mechanisms, and ecology of nonconscious social behavior. Eur J Soc Psychol 36(2):147–168

    Article  Google Scholar 

  • Barr A, Lane T, Nosenzo D (2018) On the social inappropriateness of discrimination. J Public Econ 164:153–164

    Article  Google Scholar 

  • Bauer M, Cassar A, Chytilova J, Henrich J (2014) War’s enduring effects on the development of egalitarian motivations and in-group biases. Psychol Sci 25:47–57

    Article  Google Scholar 

  • Bauer M, Cahlíková J, Chytilová J, Želinský T (2018) Social contagion of ethnic hostility. Proc Natl Acad Sci 115(19):4881–4886

    Article  Google Scholar 

  • Becker G (1957) The economics of discrimination. The University of Chicago Press, Chicago

    Google Scholar 

  • Bénabou R, Tirole J (2011) Identity morals and taboos: beliefs as assets. Q J Econ 126(2):805–855

    Article  Google Scholar 

  • Benistant J, Villeval MC (2019) Unethical behavior and group identity in contests. J Econ Psychol 72:128–155

    Article  Google Scholar 

  • Benjamin DJ, Choi JJ, Strickland AJ (2010) Social identity and preferences. Am Econ Rev 100(4):1913–1928

    Article  Google Scholar 

  • Berg J, Dickhaut J, McCabe K (1995) Trust reciprocity and social history. Games Econ Behav 10(1):122–142

    Article  Google Scholar 

  • Bernard M, Hett F, Mechtel M (2016) Social identity and social free-riding. Eur Econ Rev 90:4–17

    Article  Google Scholar 

  • Bernhard H, Fehr E, Fischbacher U (2006) Group affiliation and altruistic norm enforcement. Am Econ Rev 96(2):217–221

    Article  Google Scholar 

  • Bertrand M, Duflo E (2017) Field experiments on discrimination. In: Handbook of economic field experiments, vol 1. Elsevier Science, Amsterdam, pp 309–393

    Chapter  Google Scholar 

  • Besedeš T, Deck C, Quintanar S, Sarangi S, Shor M (2014) Effort and performance: what distinguishes interacting and noninteracting groups from individuals? South Econ J 81(2):294–322

    Article  Google Scholar 

  • Bicskei M, Lankau M, Bizer K (2016) Negative reciprocity and its relation to anger-like emotions in identity-homogeneous and-heterogeneous groups. J Econ Psychol 54:17–34

    Article  Google Scholar 

  • Birkeland S, Cappelen AW, Sorensen E, Tungodden B (2014) An experimental study of prosocial motivation among criminals. Exp Econ 17(4):501–511

    Article  Google Scholar 

  • Blouin A, Mukand SW (2019) Erasing ethnicity? Propaganda, nation building, and identity in Rwanda. J Polit Econ 127(3):1008–1062

    Article  Google Scholar 

  • Bolton GE, Ockenfels A (2000) ERC: a theory of equity reciprocity and competition. Am Econ Rev 90(1):166–193

    Article  Google Scholar 

  • Bornstein G, Gneezy U, Nagel R (2002) The effect of intergroup competition on group coordination: an experimental study. Games Econ Behav 41(1):1–25

    Article  Google Scholar 

  • Brandts J, Solà C (2010) Personal relations and their effect on behavior in an organizational setting: an experimental study. J Econ Behav Organ 73(2):246–253

    Article  Google Scholar 

  • Brewer MB (1999) The psychology of prejudice: ingroup love and outgroup hate? J Soc Issues 55(3):429–444

    Article  Google Scholar 

  • Burnham T, McCabe K, Smith VL (2000) Friend-or-foe intentionality priming in an extensive form trust game. J Econ Behav Organ 43(1):57–73

    Article  Google Scholar 

  • Burns J (2012) Race diversity and pro-social behavior in a segmented society. J Econ Behav Organ 81(2):366–378

    Article  Google Scholar 

  • Cacault MP, Grieder M (2019) How group identification distorts beliefs. J Econ Behav Organ 164:63–76

    Article  Google Scholar 

  • Cadsby CB, Du N, Song F (2016) In-group favoritism and moral decision-making. J Econ Behav Organ 128:59–71

    Article  Google Scholar 

  • Cameron L, Erkal N, Gangadharan L, Zhang M (2015) Cultural integration: experimental evidence of convergence in immigrants’ preferences. J Econ Behav Organ 111:38–58

    Article  Google Scholar 

  • Carpenter J, Cardenas JC (2011) An intercultural examination of cooperation in the commons. J Confl Resolut 55(4):632–651

    Article  Google Scholar 

  • Cason TN, Sheremeta RM, Zhang J (2012) Communication and efficiency in competitive coordination games. Games Econ Behav 76(1):26–43

    Article  Google Scholar 

  • Cason TN, Sheremeta RM, Zhang J (2017) Asymmetric and endogenous within-group communication in competitive coordination games. Exp Econ 20(4):946–972

    Article  Google Scholar 

  • Cason TN, Lau SHP, Mui VL (2019) Prior interaction, identity, and cooperation in the inter-group prisoner’s dilemma. J Econ Behav Organ 166:613–629

    Article  Google Scholar 

  • Chakravarty S, Fonseca MA (2014) The effect of social fragmentation on public good provision: an experimental study. J Behav Exp Econ 53:1–9

    Article  Google Scholar 

  • Chakravarty S, Fonseca MA, Ghosh S, Marjit S (2016) Religious fragmentation social identity and cooperation: evidence from an artefactual field experiment in India. Eur Econ Rev 90:265–279

    Article  Google Scholar 

  • Chakravarty S, Fonseca MA, Ghosh S, Kumar P, Marjit S (2019) Religious fragmentation, social identity and other-regarding preferences: evidence from an artefactual field experiment in India. J Behav Exp Econ 82:101451

    Article  Google Scholar 

  • Chang D, Chen R, Krupka E (2019) Rhetoric matters: a social norms explanation for the anomaly of framing. Games Econ Behav 116:158–178

    Article  Google Scholar 

  • Charness G, Chen Y (2019) Social identity, group behavior and teams. Work Paper, University of Michigan, Ann Arbor

    Google Scholar 

  • Charness G, Holder P (2018) Charity in the laboratory: matching competition and group identity. Manag Sci 65(3):1398–1407

    Article  Google Scholar 

  • Charness G, Kuhn P (2011) Lab labor: what can labor economists learn from the lab? In: Handbook of labor economics, vol 4. Elsevier, Amsterdam, pp 229–330

    Google Scholar 

  • Charness G, Rabin M (2002) Understanding social preferences with simple tests. Q J Econ 117(3):817–869

    Article  Google Scholar 

  • Charness G, Rustichini A (2011) Gender differences in cooperation with group membership. Games Econ Behav 72(1):77–85

    Article  Google Scholar 

  • Charness G, Villeval MC (2009) Cooperation and competition in intergenerational experiments in the field and the laboratory. Am Econ Rev 99(3):956–978

    Article  Google Scholar 

  • Charness G, Rigotti L, Rustichini A (2007) Individual behavior and group membership. Am Econ Rev 97(4):1340–1352

    Article  Google Scholar 

  • Charness G, Cobo-Reyes R, Jiménez N (2014) Identities selection and contributions in a public-goods game. Games Econ Behav 87:322–338

    Article  Google Scholar 

  • Chaudhuri A (2011) Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature. Exp Econ 14(1):47–83

    Article  Google Scholar 

  • Chen R, Chen Y (2011) The potential of social identity for equilibrium selection. Am Econ Rev 101(6):2562–2589

    Article  Google Scholar 

  • Chen Y, Li SX (2009) Group identity and social preferences. Am Econ Rev 99(1):431–457

    Article  Google Scholar 

  • Chen Y, Li SX, Liu TX, Shih M (2014) Which hat to wear? Impact of natural identities on coordination and cooperation. Games Econ Behav 84:58–86

    Article  Google Scholar 

  • Chen R, Chen Y, Liu Y, Mei Q (2017) Does team competition increase pro-social lending? Evidence from online microfinance. Games Econ Behav 101:311–333

    Article  Google Scholar 

  • Chiang CF, Liu JT, Wen TW (2019) National identity under economic integration. J Popul Econ 32(2):351–367

    Article  Google Scholar 

  • Chmura T, Goerg SJ, Weiss P (2016) Natural groups and economic characteristics as driving forces of wage discrimination. Eur Econ Rev 90:178–200

    Article  Google Scholar 

  • Choi J, Bowles S (2007) The coevolution of parochial altruism and war. Science 318:636–640

    Article  Google Scholar 

  • Chowdhury SM, Jeon JY, Ramalingam A (2016) Identity and group conflict. Eur Econ Rev 90:107–121

    Article  Google Scholar 

  • Chuah SH, Fahoum R, Hoffmann R (2013) Fractionalization and trust in India: a field-experiment. Econ Lett 119(2):191–194

    Article  Google Scholar 

  • Chuah SH, Hoffmann R, Ramasamy B, Tan JH (2014) Religion ethnicity and cooperation: an experimental study. J Econ Psychol 45:33–43

    Article  Google Scholar 

  • Chuah SH, Gächter S, Hoffmann R, Tan JH (2016) Religion discrimination and trust across three cultures. Eur Econ Rev 90:280–301

    Article  Google Scholar 

  • Coffman KB, Exley CL, Niederle M (2018) When gender discrimination is not about gender. Harvard Business School, Boston

    Google Scholar 

  • Cohn A, Fehr E, Maréchal MA (2014) Business culture and dishonesty in the banking industry. Nature 516(7529):86

    Article  Google Scholar 

  • Cooper DJ, Kagel JH (2016) Other regarding preferences: a selective survey of experimental results. In: Kagel J, Roth A (eds) The handbook of experimental economics, vol 2. Princeton University Press, Princeton

    Google Scholar 

  • Cornaglia F, Drouvelis M, Masella P (2019) Competition and the role of group identity. J Econ Behav Organ 162:136–145

    Article  Google Scholar 

  • Costa-Font J, Cowell F (2015) Social identity and redistributive preferences: a survey. J Econ Surv 29(2):357–374

    Article  Google Scholar 

  • Croson R, Marks M, Snyder J (2008) Groups work for women: gender and group identity in social dilemmas. Negot J 24(4):411–427

    Article  Google Scholar 

  • Currarini S, Mengel F (2016) Identity homophily and in-group bias. Eur Econ Rev 90:40–55

    Article  Google Scholar 

  • Daskalova V (2018) Discrimination social identity and coordination: an experiment. Games Econ Behav 107:238–252

    Article  Google Scholar 

  • Dechenaux E, Kovenock D, Sheremeta RM (2015) A survey of experimental research on contests all-pay auctions and tournaments. Exp Econ 18(4):609–669

    Article  Google Scholar 

  • Degli Antoni G, Grimalda G (2016) Groups and trust: experimental evidence on the Olson and Putnam hypotheses. J Behav Exp Econ 61:38–54

    Article  Google Scholar 

  • Della Valle N, Ploner M (2017) Reacting to unfairness: group identity and dishonest behavior. Games 8(3):28

    Article  Google Scholar 

  • Dhami S, Manifold E, al-Nowaihi A (2018) Prosociality, political identity and redistribution of earned income: theory and evidence. CESifo Working Paper, No. 7256, Munich Society for the Promotion of Economic Research – CESifo GmbH, Munich, Germany

    Google Scholar 

  • Dickinson DL, Masclet D, Peterle E (2018) Discrimination as favoritism: the private benefits and social costs of in-group favoritism in an experimental labor market. Eur Econ Rev 104:220–236

    Article  Google Scholar 

  • Drouvelis M, Nosenzo D (2013) Group identity and leading-by-example. J Econ Psychol 39:414–425

    Article  Google Scholar 

  • Duell D, Landa D (2018) Alleviating discrimination. Work Paper, University of Essex, Colchester, England

    Google Scholar 

  • Dugar S, Shahriar Q (2012) Group identity and the moral hazard problem: experimental evidence. J Econ Manag Strateg 21(4):1061–1081

    Article  Google Scholar 

  • Eckel CC, Grossman PJ (2005) Managing diversity by creating team identity. J Econ Behav Organ 58(3):371–392

    Article  Google Scholar 

  • Efferson C, Lalive R, Fehr E (2008) The coevolution of cultural groups and ingroup favoritism. Science 321(5897):1844–1849

    Article  Google Scholar 

  • Eriksson T, Mao L, Villeval MC (2017) Saving face and group identity. Exp Econ 20(3):622–647

    Article  Google Scholar 

  • Etang A, Fielding D, Knowles S (2011) Does trust extend beyond the village? Experimental trust and social distance in Cameroon. Exp Econ 14(1):15–35

    Article  Google Scholar 

  • Everett JAC, Faber NS, Crockett MJ (2015a) The influence of social preferences and reputational concerns on intergroup prosocial behaviour in gains and losses contexts. R Soc Open Sci 2(12):150546

    Article  Google Scholar 

  • Everett JAC, Faber NS, Crockett M (2015b) Preferences and beliefs in ingroup favoritism. Front Behav Neurosci 9:15

    Article  Google Scholar 

  • Falk A, Zehnder C (2013) A city-wide experiment on trust discrimination. J Public Econ 100:15–27

    Article  Google Scholar 

  • Fang H, Loury GC (2005) “Dysfunctional identities” can be rational. Am Econ Rev 95(2):104–111

    Article  Google Scholar 

  • Fehr E, Fischbacher U (2004) Third-party punishment and social norms. Evol Hum Behav 25(2):63–87

    Article  Google Scholar 

  • Fehr E, Gächter S (2002) Altruistic punishment in humans. Nature 415(6868):137–140

    Article  Google Scholar 

  • Fehr E, Schmidt KM (1999) A theory of fairness competition and cooperation. Q J Econ 114(3):817–868

    Article  Google Scholar 

  • Fehr E, Glätzle-Rützler D, Sutter M (2013) The development of egalitarianism, altruism, spite and parochialism in childhood and adolescence. Eur Econ Rev 64:369–383

    Article  Google Scholar 

  • Fehrler S, Kosfeld M (2013) Can you trust the good guys? Trust within and between groups with different missions. Econ Lett 121(3):400–404

    Article  Google Scholar 

  • Felfe C, Kocher MG, Rainer H, Saurer J, Siedler T (2018) More opportunity more cooperation? The behavioral effects of birthright citizenship on immigrant youth. CESifo Working Paper, No. 6991, Munich Society for the Promotion of Economic Research – CESifo GmbH, Munich, Germany

    Google Scholar 

  • Ferraro PJ, Cummings RG (2007) Cultural diversity, discrimination, and economic outcomes: an experimental analysis. Econ Inq 45(2):217–232

    Article  Google Scholar 

  • Fershtman C, Gneezy U (2001) Discrimination in a segmented society: an experimental approach. Q J Econ 116(1):351–377

    Article  Google Scholar 

  • Fershtman C, Gneezy U, Verboven F (2005) Discrimination and nepotism: the efficiency of the anonymity rule. J Leg Stud 34(2):371–396

    Article  Google Scholar 

  • Filippin A, Guala F (2013) Costless discrimination and unequal achievements in an experimental tournament. Exp Econ 16(3):285–305

    Article  Google Scholar 

  • Fong CM, Luttmer EF (2009) What determines giving to Hurricane Katrina victims? Experimental evidence on racial group loyalty. Am Econ J Appl Econ 1(2):64–87

    Article  Google Scholar 

  • Friesen J, Arifovic J, Wright SC, Ludwig A, Giamo L, Baray G (2012) Ethnic identity and discrimination among children. J Econ Psychol 33(6):1156–1169

    Article  Google Scholar 

  • Gangadharan L, Grossman PJ, Molle MK, Vecci J (2019) Impact of social identity and inequality on antisocial behaviour. Eur Econ Rev 119:199–215

    Article  Google Scholar 

  • Glaeser EL, Laibson DI, Scheinkman JA, Soutter CL (2000) Measuring trust. Q J Econ 115(3):811–846

    Article  Google Scholar 

  • Gneezy A, Fessler D (2012) Conflict sticks and carrots: war increases prosocial punishments and rewards. Proc R Soc B Biol Sci 279:219–223

    Article  Google Scholar 

  • Goerg SJ, Hennig-Schmidt H, Walkowitz G, Winter E (2016) In wrong anticipation-miscalibrated beliefs between Germans Israelis and Palestinians. PLoS One 11(6):e0156998

    Article  Google Scholar 

  • Goette L, Huffman D, Meier S (2006) The impact of group membership on cooperation and norm enforcement: evidence using random assignment to real social groups. Am Econ Rev 96(2):212–216

    Article  Google Scholar 

  • Goette L, Huffman D, Meier S (2012a) The impact of social ties on group interactions: evidence from minimal groups and randomly assigned real groups. Am Econ J Microecon 4(1):101–115

    Article  Google Scholar 

  • Goette L, Huffman D, Meier S, Sutter M (2012b) Competition between organizational groups: its impact on altruistic and antisocial motivations. Manag Sci 58(5):948–960

    Article  Google Scholar 

  • Grimm V, Utikal V, Valmasoni L (2017) In-group favoritism and discrimination among multiple out-groups. J Econ Behav Organ 143:254–271

    Article  Google Scholar 

  • Grosskopf B, Pearce G (2017) Discrimination in a deprived neighbourhood: an artefactual field experiment. J Econ Behav Organ 141:29–42

    Article  Google Scholar 

  • Grote N, Klausmann T, Scharfbillig M (2019) Preference for identification in the Field–Nudging Refugees’ Integration Effort. Available at SSRN 3348403

    Google Scholar 

  • Grund C, Harbring C, Thommes K (2018) Group (Re-) formation in public good games: the tale of the bad apple? J Econ Behav Organ 145:306–319

    Article  Google Scholar 

  • Gu J, Mueller A, Nielsen I, Shachat J, Smyth R (2019) Improving intergroup relations through actual and imagined contact: field experiments with Malawian shopkeepers and Chinese migrants. Econ Dev Cult Chang 68(1):273–303

    Article  Google Scholar 

  • Guala F, Filippin A (2016) The effect of group identity on distributive choice: social preference or heuristic? Econ J 127(602):1047–1068

    Article  Google Scholar 

  • Guala F, Mittone L, Ploner M (2013) Group membership team preferences and expectations. J Econ Behav Organ 86:183–190

    Article  Google Scholar 

  • Guillen P, Merrett D, Slonim R (2014) A new solution for the moral hazard problem in team production. Manag Sci 61(7):1514–1530

    Article  Google Scholar 

  • Güth W, Levati MV, Ploner M (2008) Social identity and trust – an experimental investigation. J Socio-Econ 37(4):1293–1308

    Article  Google Scholar 

  • Halevy N, Weisel O, Bornstein G (2012) “In-group love” and “out-group hate” in repeated interaction between groups. J Behav Decis Mak 25(2):188–195

    Article  Google Scholar 

  • Hargreaves Heap SP, Varoufakis Y (2002) Some experimental evidence on the evolution of discrimination co-operation and perceptions of fairness. Econ J 112(481):679–703

    Article  Google Scholar 

  • Hargreaves Heap SP, Zizzo DJ (2009) The value of groups. Am Econ Rev 99(1):295–323

    Article  Google Scholar 

  • Harris D, Herrmann B, Kontoleon A, Newton J (2015) Is it a norm to favour your own group? Exp Econ 18(3):491–521

    Article  Google Scholar 

  • Herbst L, Konrad KA, Morath F (2015) Endogenous group formation in experimental contests. Eur Econ Rev 74:163–189

    Article  Google Scholar 

  • Hermes H, Hett F, Mechtel M, Schmidt F, Schunk D, Wagner V (2019) Do children cooperate conditionally? Adapting the strategy method for first-graders. J Econ Behav Organ. https://www.sciencedirect.com/science/article/pii/S0167268118303718

  • Hernandez-Lagos P, Minor D (2018) Political identity and trust. Harvard Business School Strategy Unit working paper (16-012). Harvard Business School, Boston

    Google Scholar 

  • Hogg MA, Abrams D (2007) Intergroup behavior and social identity. In: Michael A. Hogg, Joel Cooper (eds) The Sage handbook of social psychology: concise student edition. SAGE Publications Ltd, London, pp 335–360

    Google Scholar 

  • Ibanez M, Schaffland E (2018) Organizational performance with in-group and out-group leaders: an experiment. J Behav Exp Econ 73:1–10

    Article  Google Scholar 

  • Ioannou CA, Qi S, Rustichini A (2015) Group payoffs as public signals. J Econ Psychol 48:89–105

    Article  Google Scholar 

  • Jauernig J, Uhl M, Luetge C (2016) Competition-induced punishment of winners and losers: who is the target? J Econ Psychol 57:13–25

    Article  Google Scholar 

  • Jiang J, Li SX (2019) Group identity and partnership. J Econ Behav Organ 160:202–213

    Article  Google Scholar 

  • Johnson DB, Oxoby RJ (2015) Can interaction be the primary focus of in-group biases? Glob Econ Manage Rev 20(1):1–5

    Article  Google Scholar 

  • Kato T, Shu P (2016) Competition and social identity in the workplace: evidence from a Chinese textile firm. J Econ Behav Organ 131:37–50

    Article  Google Scholar 

  • Ke C, Konrad KA, Morath F (2013) Brothers in arms–an experiment on the alliance puzzle. Games Econ Behav 77(1):61–76

    Article  Google Scholar 

  • Klor EF, Shayo M (2010) Social identity and preferences over redistribution. J Public Econ 94(3–4):269–278

    Article  Google Scholar 

  • Kolstad I, Wiig A (2013) Does an educated mind take the broader view? A field experiment on in-group favouritism among microcredit clients. J Socio-Econ 45:10–17

    Article  Google Scholar 

  • Kranton RE, Sanders SG (2017) Groupy versus non-groupy social preferences: personality region and political party. Am Econ Rev 107(5):65–69

    Article  Google Scholar 

  • Kranton R, Pease M, Sanders S, Huettel S (2018) Groupy and non-groupy behavior: deconstructing bias in social preferences. Work Paper, Duke University, Durham

    Google Scholar 

  • Lane T (2016) Discrimination in the laboratory: a meta-analysis of economics experiments. Eur Econ Rev 90:375–402

    Article  Google Scholar 

  • Le Coq C, Tremewan J, Wagner AK (2015) On the effects of group identity in strategic environments. Eur Econ Rev 76:239–252

    Article  Google Scholar 

  • Li SX, Liu TX (2019) Group identity and cooperation in infinitely repeated games. Work Paper, University of Arkansas, Fayetteville

    Google Scholar 

  • Li SX, Yang S (2019) Group identity and punishment. Work Paper, University of Arkansas, Fayetteville

    Google Scholar 

  • Madiès T, Villeval MC, Wasmer M (2013) Intergenerational attitudes towards strategic uncertainty and competition: a field experiment in a Swiss bank. Eur Econ Rev 61:153–168

    Article  Google Scholar 

  • Mago SD, Samak AC, Sheremeta RM (2016) Facing your opponents: social identification and information feedback in contests. J Confl Resolut 60(3):459–481

    Article  Google Scholar 

  • Masella P, Meier S, Zahn P (2014) Incentives and group identity. Games Econ Behav 86:12–25

    Article  Google Scholar 

  • McLeish KN, Oxoby RJ (2011) Social interactions and the salience of social identity. J Econ Psychol 32(1):172–178

    Article  Google Scholar 

  • Meier S, Pierce L, Vaccaro A, La Cara B (2016) Trust and in-group favoritism in a culture of crime. J Econ Behav Organ 132:78–92

    Article  Google Scholar 

  • Mobius M, Rosenblat T, Wang Q (2016) Ethnic discrimination: evidence from China. Eur Econ Rev 90:165–177

    Article  Google Scholar 

  • Montmarquette C, Rullière JL, Villeval MC, Zeiliger R (2004) Redesigning teams and incentives in a merger: an experiment with managers and students. Manag Sci 50(10):1379–1389

    Article  Google Scholar 

  • Morell A (2019) The short arm of guilt–an experiment on group identity and guilt aversion. J Econ Behav Organ 166:332–345

    Article  Google Scholar 

  • Morese R, Rabellino D, Sambataro F, Perussia F, Valentini MC, Bara BG, Bosco FM (2016) Group membership modulates the neural circuitry underlying third party punishment. PLoS One 11(11):e0166357

    Article  Google Scholar 

  • Morita H, Servátka M (2013) Group identity and relation-specific investment: an experimental investigation. Eur Econ Rev 58:95–109

    Article  Google Scholar 

  • Mullen B, Brown R, Smith C (1992) Ingroup bias as a function of salience, relevance, and status: an integration. Eur J Soc Psychol 22(2):103–122

    Article  Google Scholar 

  • Muller D (2019) The anatomy of distributional preferences with group identity. J Econ Behav Organ 166:785–807

    Article  Google Scholar 

  • Mussweiler T, Ockenfels A (2013) Similarity increases altruistic punishment in humans. Proc Natl Acad Sci 110(48):19318–19323

    Article  Google Scholar 

  • Neumark D (2018) Experimental research on labor market discrimination. J Econ Lit 56(3):799–866

    Article  Google Scholar 

  • Ockenfels A, Werner P (2014) Beliefs and ingroup favoritism. J Econ Behav Organ 108:453–462

    Article  Google Scholar 

  • Paetzel F, Sausgruber R (2018) Cognitive ability and in-group bias: an experimental study. J Public Econ 167:280–292

    Article  Google Scholar 

  • Pan XS, Houser D (2013) Cooperation during cultural group formation promotes trust towards members of out-groups. Proc R Soc B Biol Sci 280(1762):20130606

    Article  Google Scholar 

  • Pan XS, Houser D (2019) Why trust out-groups? The role of punishment under uncertainty. J Econ Behav Organ 158:236–254

    Article  Google Scholar 

  • Pechar E, Kranton R (2018) Moderators of intergroup discrimination in the minimal group paradigm: a meta-analysis. Work Paper, Duke University, Durham

    Google Scholar 

  • Ravetti C, Sarr M, Munene D, Swanson T (2019) Discrimination and favouritism among South African workers: ethnic identity and union membership. World Dev 123:104604

    Article  Google Scholar 

  • Riener G, Wiederhold S (2013) Heterogeneous treatment effects in groups. Econ Lett 120(3):408–412

    Article  Google Scholar 

  • Riener G, Wiederhold S (2016) Team building and hidden costs of control. J Econ Behav Organ 123:1–18

    Article  Google Scholar 

  • Robalo P, Schram A, Sonnemans J (2017) Other-regarding preferences in-group bias and political participation: an experiment. J Econ Psychol 62:130–154

    Article  Google Scholar 

  • Ruffle BJ, Sosis R (2006) Cooperation and the in-group-out-group bias: a field test on Israeli kibbutz members and city residents. J Econ Behav Organ 60(2):147–163

    Article  Google Scholar 

  • Sen A (2007) Identity and violence: the illusion of destiny. Penguin Books India, London

    Book  Google Scholar 

  • Shayo M (2009) A model of social identity with an application to political economy: nation class and redistribution. Am Polit Sci Rev 103(2):147–174

    Article  Google Scholar 

  • Shayo M (2019) Social identity and economic policy. Annu Rev Econ 12. Available at SSRN: https://ssrn.com/abstract=3438743

  • Smith J (2012) Reputation social identity and social conflict. J Pub Econ Theory 14(4):677–709

    Article  Google Scholar 

  • Smith J, Bezrukova K (2013) Toward an understanding of the endogenous nature of group identification in games. Soc Sci J 50(2):204–212

    Article  Google Scholar 

  • Solow JL, Kirkwood N (2002) Group identity and gender in public goods experiments. J Econ Behav Organ 48(4):403–412

    Article  Google Scholar 

  • Stoddard O, Leibbrandt A (2014) An experimental study on the relevance and scope of nationality as a coordination device. Econ Inq 52(4):1392–1407

    Article  Google Scholar 

  • Suchon R, Villeval MC (2019) The effects of status mobility and group identity on trust. J Econ Behav Organ 163:430–463

    Article  Google Scholar 

  • Sutter M (2009) Individual behavior and group membership: comment. Am Econ Rev 99(5):2247–2257

    Article  Google Scholar 

  • Tajfel H, Turner JC (1979) An integrative theory of intergroup conflict. In: Austin WG, Worchel S (eds) The social psychology of intergroup relations. Brooks/Cole, Monterey, pp 33–47

    Google Scholar 

  • Tajfel H, Turner JC (1986) The social identity theory of intergroup behavior. In: Worchel S, Austin W (eds) The psychology of intergroup relations. NelsonHall, Chicago, pp 7–24

    Google Scholar 

  • Tajfel H, Billig M, Bundy R, Flament CL (1971) Social categorization and inter-group behavior Europ. J Soc Psychol 1(2):149–178

    Google Scholar 

  • Tanaka T, Camerer CF (2016) Trait perceptions influence economic out-group bias: lab and field evidence from Vietnam. Exp Econ 19(3):513–534

    Article  Google Scholar 

  • Tsutsui K, Zizzo DJ (2014) Group status minorities and trust. Exp Econ 17(2):215–244

    Article  Google Scholar 

  • Tullock G (1980) Efficient rent seeking. In: Buchanan JM, Tollison RD, Tullock G (eds) Toward a theory of the rent-seeking society. Texas A&M University Press, College Station, pp 97–112

    Google Scholar 

  • Van Huyck JB, Battalio RC, Beil RO (1990) Tacit coordination games, strategic uncertainty, and coordination failure. Am Econ Rev 80(1):234–248

    Google Scholar 

  • Van Parys J, Ash E (2018) Sequential decision-making with group identity. J Econ Psychol 69:1–18

    Article  Google Scholar 

  • Weisel O, Zultan R (2016) Social motives in intergroup conflict: group identity and perceived target of threat. Eur Econ Rev 90:122–133

    Article  Google Scholar 

  • Weng Q, Carlsson F (2015) Cooperation in teams: the role of identity punishment and endowment distribution. J Public Econ 126:25–38

    Article  Google Scholar 

  • Yamagishi T, Kiyonari T (2000) The group as the container of generalized reciprocity. Soc Psychol Q 63:116–132

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of Arkansas, Fayetteville, AR, USA

    Sherry Xin Li

Authors
  1. Sherry Xin Li
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sherry Xin Li .

Editor information

Editors and Affiliations

  1. UNU-MERIT & Princeton University, Maastricht, The Netherlands

    Klaus F. Zimmermann

Section Editor information

  1. GATE, CNRS – University of Lyon, Ecully, France

    Marie Claire Villeval

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Li, S.X. (2020). Group Identity, Ingroup Favoritism, and Discrimination. In: Zimmermann, K. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_123-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-57365-6_123-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-57365-6

  • Online ISBN: 978-3-319-57365-6

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation