Discrimination and favouritism among workers: union membership and ethnic identity

Chiara Ravetti, Mare Sarr, Timothy Swanson and Daniel Munene

No 57-2017, CIES Research Paper series from Centre for International Environmental Studies, The Graduate Institute

Abstract: This paper analyses how labour institutions and ethnic identity shape favouritism and discrimination among workers. We conduct an experiment with union and non-union South African mineworkers from various ethnicities. We examine in-group and out-group behaviour, emphasizing the relative ranking of these groups and their interaction. We find that unions create both in-group and out-group favouritism towards co-ethnic members and members of ethnic majorities. This favouritism is however undermined by unionised subcontract workers who experience precarious conditions. Furthermore, union members discriminate against non-unionised ethnic minorities. Finally, non-union members (primarily subcontract workers) discriminate against union members, particularly after negative shocks.

Keywords: discrimination; labour market segmentation; trade union; ethnicity; dictator game. (search for similar items in EconPapers)
JEL-codes: J42 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2017-10-18
New Economics Papers: this item is included in nep-cdm
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Persistent link: https://EconPapers.repec.org/RePEc:gii:ciesrp:cies_rp_57

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