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Discrimination and favouritism among workers: union membership and ethnic identity

Author

Listed:
  • Chiara Ravetti
  • Mare Sarr
  • Tim Swanson
  • Daniel Munene

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.

Suggested Citation

  • Chiara Ravetti & Mare Sarr & Tim Swanson & Daniel Munene, 2017. "Discrimination and favouritism among workers: union membership and ethnic identity," CIES Research Paper series 57-2017, Centre for International Environmental Studies, The Graduate Institute.
    • Handle: RePEc:gii:ciesrp:cies_rp_57
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    discrimination; labour market segmentation; trade union; ethnicity; dictator game.;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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