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Opportunity is not everything

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  • Karla Hoff
  • Priyanka Pandey

Abstract

We experimentally investigate in village India how belief systems that hierarchize social groups affect the groups' responses to economic opportunities. Earlier we found that making caste salient hurt low caste performance both absolutely and relative to the high caste's. To examine the possible role of mistrust, we manipulate the scope for discretion in rewarding performance. When offered a gamble in which success mechanically triggers rewards, making caste salient has no significant effect. Instead, it is in the case with scope for discretion that making caste salient creates a large caste gap in the proportion of subjects who refuse the gamble. Copyright (c) The European Bank for Reconstruction and Development, 2005.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 13 (2005)
Issue (Month): 3 (07)
Pages: 445-472

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Handle: RePEc:bla:etrans:v:13:y:2005:i:3:p:445-472

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Cited by:
  1. Joana Narotomi & Rodrigo Soares & Juliano J. Assunção, 2009. "Institutional Development and Colonial Heritage within Brazil," Textos para discussão 561, Department of Economics PUC-Rio (Brazil).
  2. Uwe Dulleck & Jonas Fooken & Yumei He, 2012. "Public Policy and Individual Labor Market Discrimination: An Artefactual Field Experiment in China," QuBE Working Papers 002, QUT Business School.
  3. Joana Naritomi & Rodrigo R. Soares & Juliano J. Assunção, 2007. "Rent Seeking and the Unveiling of 'De Facto' Institutions: Development and Colonial Heritage within Brazil," NBER Working Papers 13545, National Bureau of Economic Research, Inc.
  4. Karla Hoff & Priyanka Pandey, 2006. "Discrimination, Social Identity, and Durable Inequalities," American Economic Review, American Economic Association, vol. 96(2), pages 206-211, May.

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