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UNU-WIDER WP/2012/45 Does an Educated Mind Take the Broader View? A field experiment on in-group favouritism among microcredit clients

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A teenager wears torn rubber boots in a muddy local market in Bac Ha, Viet Nam. As of 2005 figures, half the world population—more than 3 billion people–is estimated to live on less than USD 2.50 a day. Bac Ha, Viet Nam. UN Photo/Kibae Park.

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WP/045 Does an Educated Mind Take the Broader View? A field experiment on in-group favouritism among microcredit clients

A number of studies document an in-group bias in social dilemma situations. While group structure and dynamics are important in shaping in-group favouritism, less attention has been paid to individual characteristics affecting favouritism. Using data from dictator games conducted among 523 microcredit clients in Angola, this paper analyzes the effect of education on in-group favouritism. When addressing the endogeneity of education, we find that education increases in-group bias. This goes against the conventional view that education broadens the perspectives of an individual. In addition, our results suggest that in-group favouritism is related to gender, family background and access to particular forms of networks.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/45
Title:
WP/045 Does an Educated Mind Take the Broader View? A field experiment on in-group favouritism among microcredit clients
Authors:
Ivar Kolstad and Arne Wiig
Publication date:
May 2012
ISBN 13 Web:
978-92-9230-508-6
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
in-group favouritism, parochialism, field experiment, social preferences, microcredit
JEL:
C72, C93, D03, O12
Project:
New Approaches to Measuring Poverty and Vulnerability
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida), and the United Kingdom (Department for International Development).
Format:
online

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