Group Status, Minorities and Trust

42 Pages Posted: 11 Sep 2010

See all articles by Kei Tsutsui

Kei Tsutsui

University of Bath - Department of Economics

Daniel John Zizzo

University of Queensland - School of Economics

Date Written: September 11, 2010

Abstract

We present the results of an experiment that attempts to measure the impact of majority and minority groups, and high status and low status groups, on well-being, cooperation and social capital. In the experiment, group membership is induced artificially, subjects interact with insiders and outsiders in trust games and periodically enter markets where they can trade group membership. We find that trust falls with groups because of discrimination against outsiders. Against this, however, there is evidence that low group status and minority subjects are less satisfied, and that low status subjects trust less other low status subjects.

Keywords: Groups, Trust Games, Social Capital, Status Effects, Relative Size Effects

JEL Classification: C72, C91, Z13

Suggested Citation

Tsutsui, Kei and Zizzo, Daniel John, Group Status, Minorities and Trust (September 11, 2010). Available at SSRN: https://ssrn.com/abstract=1675384 or http://dx.doi.org/10.2139/ssrn.1675384

Kei Tsutsui

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom
01255 38 6402 (Phone)

HOME PAGE: http://www.bath.ac.uk/economics/staff/kei-tsutsui/

Daniel John Zizzo (Contact Author)

University of Queensland - School of Economics ( email )

St Lucia
Brisbane, Queensland 4072
Australia

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