EconPapers    
Economics at your fingertips  
 

Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market

David Dickinson, David Masclet () and Emmanuel Peterle ()

European Economic Review, 2018, vol. 104, issue C, 220-236

Abstract: We examine both the private benefits and spillover costs of labor market favoritism in a unique laboratory experiment design. Our data show that both employment preference and wage offers favor in-group members. Workers positively reciprocate towards in-group employers by choosing higher effort in a gift-exchange game. Thus, favoritism can be privately rational for employers. However, unemployed subjects are allowed to burn resources (at a cost to themselves), and we document significantly increased resource destruction when unemployment can be attributed to favoritism towards others. This highlights a significant spillover and often ignored cost of favoritism, and it points to one possible micro-foundation of some antisocial behavior.

Keywords: Discrimination; Experimental economics; Social identity; Conflict (search for similar items in EconPapers)
JEL-codes: C90 C92 J15 J16 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292118300370
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2018) Downloads
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2018) Downloads
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2018) Downloads
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2017) Downloads
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2017) Downloads
Working Paper: Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market (2017) Downloads
Working Paper: Discrimination as Favoritism: The Private Benefits and Social Costs of In-group Favoritism in an Experimental Labor Market (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:104:y:2018:i:c:p:220-236

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-01-31
Handle: RePEc:eee:eecrev:v:104:y:2018:i:c:p:220-236