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The effect of financial constraints on in-group bias: Evidence from rice farmers in Thailand

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  • Boonmanunt, Suparee
  • Meier, Stephan

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 a partner either from their own village (in-group) or from another village (out-group). We find that in-group bias in cooperation and norm enforcement is not increased by financial constraints. By contrast, the results seem to suggest that in-group bias exists only after harvest, that is, when people are less financially constrained.

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  • Boonmanunt, Suparee & Meier, Stephan, 2023. "The effect of financial constraints on in-group bias: Evidence from rice farmers in Thailand," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 96-109.
    • Handle: RePEc:eee:jeborg:v:207:y:2023:i:c:p:96-109
    DOI: 10.1016/j.jebo.2023.01.012
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    Cited by:

    1. Maria Cotofan & Robert Dur & Stephan Meier, 2021. "Does growing up in a recession increase compassion? The case of attitudes towards immigration," CEP Discussion Papers dp1757, Centre for Economic Performance, LSE.
    2. Gustav Agneman & Paolo Falco & Exaud Joel & Onesmo Selejio, 2023. "The Material basis of Cooperation: how Scarcity Reduces Trusting Behaviour," The Economic Journal, Royal Economic Society, vol. 133(652), pages 1265-1285.
    3. Gustav Agneman & Paolo Falco & Exaud Joel & Onesmo Selejio, 2020. "Does Scarcity Reduce Cooperation? Experimental Evidence from Rural Tanzania," DERG working paper series 20-04, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).

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    More about this item

    Keywords

    Cooperation; Financial constraints; In-group bias; Lab-in-the-field experiment; Norm enforcement;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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