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The Effect of Financial Constraints on In-Group Bias: Evidence from Rice Farmers in Thailand

Author

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  • Boonmanunt, Suparee

    (Mahidol University)

  • Meier, Stephan

    (Columbia University)

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 either in-group or out-group partners at village level. We find that in-group bias in cooperation and norm enforcement exist only after harvest, that is, when people are less financially constrained.

Suggested Citation

  • Boonmanunt, Suparee & Meier, Stephan, 2020. "The Effect of Financial Constraints on In-Group Bias: Evidence from Rice Farmers in Thailand," IZA Discussion Papers 12919, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12919
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    Cited by:

    1. Cotofan, Maria & Dur, Robert & Meier, Stephan, 2024. "Does growing up in economic hard times increase compassion? The case of attitudes towards immigration," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 245-262.
    2. 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.
    3. 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.
    4. 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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