Return on trust is lower for immigrants

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We conduct an experiment with a representative sample of the Dutch population to study whether trustworthiness depends on the ethnicity of the interaction partner. Native Dutch trustees play with an anonymous trustor, who is either another native Dutch or a non‐Western immigrant. We find that trustees reciprocate trust up to 13% less if the trustor is a non‐Western immigrant than if he/she is native Dutch. This percentage increases up to 23% for trustees who report disliking ethnic diversity in an independent survey. Since the decision to reciprocate does not involve behavioral risk, our results provide evidence of taste‐based discrimination.
Original languageEnglish
Pages (from-to)1992-2009
JournalThe Economic Journal
Volume129
Issue number621
DOIs
Publication statusPublished - Jul 2019

Keywords

  • DISCRIMINATION
  • FAIRNESS
  • FIELD EXPERIMENT
  • GAME
  • LABOR-MARKET
  • METAANALYSIS
  • PREFERENCES

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