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Trust and In-Group Favoritism in a Culture of Crime

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  • Meier, Stephan

    (Columbia University)

  • Pierce, Lamar

    (Washington University, St. Louis)

  • Vaccaro, Antonino

    (University of Navarra)

Abstract

We use experiments in high schools in two neighborhoods in the metropolitan area of Palermo, Italy to experimentally demonstrate that the historical informal institution of organized crime can undermine current institutions, even in religiously and ethnically homogeneous populations. Using trust and prisoner's dilemma games, we found that students in a neighborhood with high Mafia involvement exhibit lower generalized trust and trustworthiness, but higher in-group favoritism, with punishment norms failing to resolve these deficits. Our study suggests that a culture of organized crime can affect adolescent norms and attitudes that might support a vicious cycle of in-group favoritism and crime that in turn hinders economic development.

Suggested Citation

  • Meier, Stephan & Pierce, Lamar & Vaccaro, Antonino, 2014. "Trust and In-Group Favoritism in a Culture of Crime," IZA Discussion Papers 8169, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8169
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    Cited by:

    1. Angerer, Silvia & Glätzle-Rützler, Daniela & Lergetporer, Philipp & Sutter, Matthias, 2016. "Cooperation and discrimination within and across language borders: Evidence from children in a bilingual city," European Economic Review, Elsevier, vol. 90(C), pages 254-264.
    2. Bartoš, Vojtěch & Levely, Ian, 2021. "Sanctioning and trustworthiness across ethnic groups: Experimental evidence from Afghanistan," Journal of Public Economics, Elsevier, vol. 194(C).
    3. Levely, Ian & Bartos, Vojtech, 2018. "Sanctioning and Trustworthiness Across Ethnic Groups," Rationality and Competition Discussion Paper Series 107, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    in-group favoritism; trust; organized crime; Mafia;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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