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Race and trust in post-apartheid South Africa

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  • Justine Burns

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    (School of Economics, University of Cape Town)

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    Abstract

    I examine the impact of racial identity on behavior in trust games played by White, Black and Colored high school students in South Africa. There is a systematic pattern of distrust towards Black partners, even by Black proposers, partially attributable to mistaken expectations. White proposers are significantly less likely to engage in a strategic interaction at all when paired with a Black partner, while Colored and Black proposers engage in exchange but at lower levels than when paired with nonBlacks. However, greater racial diversity in schools and friendship groups is positively and significaantly associated with greater trust towards Black partners.

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    File URL: http://www.saldru.uct.ac.za/home/index.php?/component/option,com_docman/Itemid,33/gid,208/task,doc_download/
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    Bibliographic Info

    Paper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU/CSSR Working Papers with number 078.

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    Date of creation: 2004
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    Handle: RePEc:ldr:cssrwp:078

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    1. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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    8. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
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    10. Frohlich, Norman & Oppenheimer, Joe & Bernard Moore, J., 2001. "Some doubts about measuring self-interest using dictator experiments: the costs of anonymity," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 271-290, November.
    11. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
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    13. Fedderke, Johannes & Klitgaard, Robert, 1998. "Economic Growth and Social Indicators: An Exploratory Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 46(3), pages 455-89, April.
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