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Minorities’ strategic response to discrimination: Experimental evidence

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  • Kudashvili, Nikoloz
  • Lergetporer, Philipp

Abstract

Discrimination against minorities is pervasive in many societies, but little is known about strategies that minorities apply to minimize discrimination. In our trust game with 758 high-school students in the country of Georgia, ethnic Georgian trustors discriminate against the ethnic Armenian minority group. We introduce an initial signaling stage to investigate Armenians’ willingness to hide their ethnicity to avoid expected discrimination. 43 percent of Armenian trustees untruthfully signal that they have a Georgian name. Signaling behavior is driven by expected transfers and identity-based motives. This strategic misrepresentation of ethnicity increases Georgian trustors’ expected back transfers and eliminates their discriminatory behavior.

Suggested Citation

  • Kudashvili, Nikoloz & Lergetporer, Philipp, 2022. "Minorities’ strategic response to discrimination: Experimental evidence," Journal of Public Economics, Elsevier, vol. 208(C).
  • Handle: RePEc:eee:pubeco:v:208:y:2022:i:c:s0047272722000329
    DOI: 10.1016/j.jpubeco.2022.104630
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    Cited by:

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    2. Lea Heursen & Svenja Friess & Marina Chugunova, 2023. "Reputational Concerns and Advice-Seeking at Work," Rationality and Competition Discussion Paper Series 447, CRC TRR 190 Rationality and Competition.
    3. Enzo Brox & Riccardo Di Francesco, 2024. "The Cost of Coming Out," CEIS Research Paper 572, Tor Vergata University, CEIS, revised 16 Apr 2024.
    4. Jan Gromadzki & Przemysław Siemaszko, 2022. "#IamLGBT: Social Networks and Coming Out," IBS Working Papers 06/2022, Instytut Badan Strukturalnych.
    5. Enzo Brox & Riccardo Di Francesco, 2024. "The Cost of Coming Out," Papers 2403.03649, arXiv.org, revised Jun 2024.
    6. Tom Lane, 2023. "The strategic use of social identity," Discussion Papers 2023-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

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    More about this item

    Keywords

    Discrimination; Trust game; Experiment; Signaling; Adolescents;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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