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The Effect of Financial Constraints on In-Group Bias: Evidence from Rice Farmers in Thailand

Suparee Boonmanunt () and Stephan Meier ()
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Suparee Boonmanunt: Mahidol University
Stephan Meier: Columbia University

No 12919, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In-group bias can be detrimental for communities and economic development. We study the causal effect of financial constraints on in-group bias in prosocial behaviors – cooperation, norm enforcement, and sharing – among low-income rice farmers in rural Thailand, who cultivate and harvest rice once a year. We use a between-subjects design – randomly assigning participants to experiments either before harvest (more financially constrained) or after harvest. Farmers interacted with either in-group or out-group partners at village level. We find that in-group bias in cooperation and norm enforcement exist only after harvest, that is, when people are less financially constrained.

Keywords: cooperation; financial constraints; in-group bias; lab-in-the-field experiment; norm enforcement (search for similar items in EconPapers)
JEL-codes: C93 D64 D91 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2020-01
New Economics Papers: this item is included in nep-agr, nep-cdm, nep-exp and nep-sea
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