Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2021037.html
   My bibliography  Save this paper

Does commonness fill the common fund? Experimental evidence on the role of identity for public good contributions in India

Author

Listed:
  • Konda, Bruhan

    (UNU-MERIT, Maastricht University)

  • Dietrich, Stephan

    (UNU-MERIT, Maastricht University)

  • Nillesen, Eleonora

    (UNU-MERIT, Maastricht University)

Abstract
We examine how the type of common identity affects voluntary contribution to public goods in groups that differ in their social image. We conjecture that groups with perceived high-status identity engage in higher levels of collective action compared to groups with perceived low-status identity. We study this using a lab-in-the-field experiment in rural India with members from the top and bottom of the caste hierarchy. Using a 2-person public good game, we empirically test (i) whether a caste gap in contributions emerges when group identities are made salient (ii) whether these differences are driven by the presence of punishment, and (iii) whether exogenously boosting caste identities by a role model prime diminishes the caste gap. Our results show that stereotyped groups fail to act collectively to provide public goods, possibly due to lack of trust towards their own group members. This gap disappears after the role model priming treatment and reaffirms the role of social identity in explaining the difference in contributions between groups that differ in the social image.

Suggested Citation

  • Konda, Bruhan & Dietrich, Stephan & Nillesen, Eleonora, 2021. "Does commonness fill the common fund? Experimental evidence on the role of identity for public good contributions in India," MERIT Working Papers 2021-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2021037
    as

    Download full text from publisher

    File URL: https://unu-merit.nl/publications/wppdf/2021/wp2021-037.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ernst Fehr & Karla Hoff, 2011. "Introduction: Tastes, Castes and Culture: the Influence of Society on Preferences," Economic Journal, Royal Economic Society, vol. 121(556), pages 396-412, November.
    2. Karla Hoff & Mayuresh Kshetramade & Ernst Fehr, 2011. "Caste and Punishment: the Legacy of Caste Culture in Norm Enforcement," Economic Journal, Royal Economic Society, vol. 121(556), pages 449-475, November.
    3. Daniel J. Benjamin & James J. Choi & Geoffrey Fisher, 2016. "Religious Identity and Economic Behavior," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 617-637, October.
    4. Matthew Blackwell & Stefano Iacus & Gary King & Giuseppe Porro, 2009. "cem: Coarsened exact matching in Stata," Stata Journal, StataCorp LP, vol. 9(4), pages 524-546, December.
    5. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2011. "Multivariate Matching Methods That Are Monotonic Imbalance Bounding," Journal of the American Statistical Association, American Statistical Association, vol. 106(493), pages 345-361.
    6. Daniel J. Benjamin & James J. Choi & A. Joshua Strickland, 2010. "Social Identity and Preferences," American Economic Review, American Economic Association, vol. 100(4), pages 1913-1928, September.
    7. Gary Charness & Luca Rigotti & Aldo Rustichini, 2007. "Individual Behavior and Group Membership," American Economic Review, American Economic Association, vol. 97(4), pages 1340-1352, September.
    8. McLeish, Kendra N. & Oxoby, Robert J., 2011. "Social interactions and the salience of social identity," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 172-178, February.
    9. Cox, James C. & Orman, Wafa Hakim, 2015. "Trust and trustworthiness of immigrants and native-born Americans," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 1-8.
    10. Ernst Fehr & Urs Fischbacher, "undated". "Third Party Punishment and Social Norms," IEW - Working Papers 106, Institute for Empirical Research in Economics - University of Zurich.
    11. Jordi Brandts & Gary Charness, 2011. "The strategy versus the direct-response method: a first survey of experimental comparisons," Experimental Economics, Springer;Economic Science Association, vol. 14(3), pages 375-398, September.
    12. List, John A. & Price, Michael K., 2009. "The role of social connections in charitable fundraising: Evidence from a natural field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 69(2), pages 160-169, February.
    13. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    14. Burns, Justine, 2006. "Racial stereotypes, stigma and trust in post-apartheid South Africa," Economic Modelling, Elsevier, vol. 23(5), pages 805-821, September.
    15. Iacus, Stefano & King, Gary & Porro, Giuseppe, 2009. "cem: Software for Coarsened Exact Matching," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 30(i09).
    16. Hoff, Karla & Pandey, Priyanka, 2014. "Making up people—The effect of identity on performance in a modernizing society," Journal of Development Economics, Elsevier, vol. 106(C), pages 118-131.
    17. Helen Bernhard & Urs Fischbacher & Ernst Fehr, 2006. "Parochial altruism in humans," Nature, Nature, vol. 442(7105), pages 912-915, August.
    18. Bicskei, Marianna & Lankau, Matthias & Bizer, Kilian, 2016. "Negative reciprocity and its relation to anger-like emotions in identity-homogeneous and -heterogeneous groups," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 17-34.
    19. Catherine Bros, 2014. "The Burden of Caste on Social Identity in India," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1411-1429, November.
    20. Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-457, March.
    21. James C. Cox & Vjollca Sadiraj & Urmimala Sen, 2020. "Cultural Identities And Resolution Of Social Dilemmas," Economic Inquiry, Western Economic Association International, vol. 58(1), pages 49-66, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jun Luo & Yefeng Chen & Haoran He & Guanlin Gao, 2019. "Hukou identity and fairness in the ultimatum game," Theory and Decision, Springer, vol. 87(3), pages 389-420, October.
    2. Tomomi Tanaka & Colin F. Camerer, 2016. "Trait perceptions influence economic out-group bias: lab and field evidence from Vietnam," Experimental Economics, Springer;Economic Science Association, vol. 19(3), pages 513-534, September.
    3. Jiang, Jiang & Li, Sherry Xin, 2019. "Group identity and partnership," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 202-213.
    4. Drouvelis, Michalis & Malaeb, Bilal & Vlassopoulos, Michael & Wahba, Jackline, 2021. "Cooperation in a fragmented society: Experimental evidence on Syrian refugees and natives in Lebanon," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 176-191.
    5. Benistant, Julien & Villeval, Marie Claire, 2019. "Unethical behavior and group identity in contests," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 128-155.
    6. Afridi, Farzana & Li, Sherry Xin & Ren, Yufei, 2015. "Social identity and inequality: The impact of China's hukou system," Journal of Public Economics, Elsevier, vol. 123(C), pages 17-29.
    7. Astorne, Carmen, 2023. "Noisy Identity and Cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 203-234.
    8. Paetzel, Fabian & Sausgruber, Rupert, 2018. "Cognitive ability and in-group bias: An experimental study," Journal of Public Economics, Elsevier, vol. 167(C), pages 280-292.
    9. Bicskei, Marianna & Lankau, Matthias & Bizer, Kilian, 2016. "Negative reciprocity and its relation to anger-like emotions in identity-homogeneous and -heterogeneous groups," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 17-34.
    10. Haimanti Bhattacharya & Subhasish Dugar, 2014. "Partnership Formation: The Role of Social Status," Management Science, INFORMS, vol. 60(5), pages 1130-1147, May.
    11. Azmat, Saad & Kabir Hassan, M. & Ali, Haiqa & Sohel Azad, A.S.M., 2021. "Religiosity, neglected risk and asset returns: Theory and evidence from Islamic finance industry," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 74(C).
    12. Boonmanunt, Suparee & Meier, Stephan, 2023. "The effect of financial constraints on in-group bias: Evidence from rice farmers in Thailand," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 96-109.
    13. Delavande, Adeline & Zafar, Basit, 2015. "Stereotypes and Madrassas: Experimental evidence from Pakistan," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 247-267.
    14. Jeffrey V. Butler & Pierluigi Conzo & Martin A. Leroch, 2013. "Social Identity and Punishment," EIEF Working Papers Series 1316, Einaudi Institute for Economics and Finance (EIEF), revised May 2013.
    15. Marie Claire Villeval, 2021. "Group Identity and Social Preferences by Yan Chen and Sherry X. Li," Post-Print halshs-03504258, HAL.
    16. Meier, Stephan & Pierce, Lamar & Vaccaro, Antonino & La Cara, Barbara, 2016. "Trust and in-group favoritism in a culture of crime," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 78-92.
    17. Joan Costa-Font & Frank Cowell, 2015. "Social Identity And Redistributive Preferences: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 357-374, April.
    18. Gupta, Gautam & Mahmud, Minhaj & Maitra, Pushkar & Mitra, Santanu & Neelim, Ananta, 2018. "Religion, minority status, and trust: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 180-205.
    19. Boulu-Reshef, Béatrice & Schulhofer-Wohl, Jonah, 2022. "The impact of distance on parochial altruism: An experimental investigation," European Journal of Political Economy, Elsevier, vol. 75(C).
    20. Grote, Nora & Klausmann, Tim & Scharfbillig, Mario, 2023. "Investment in identity in the field-Nudging refugees’ integration effort," European Journal of Political Economy, Elsevier, vol. 78(C).

    More about this item

    Keywords

    Common identity; Caste; Public goods; Lab-in-the-field experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • 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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2021037. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.