CULTURAL DIVERSITY, DISCRIMINATION, AND ECONOMIC OUTCOMES: AN EXPERIMENTAL ANALYSIS |
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| Authors: | PAUL J. FERRARO RONALD G. CUMMINGS |
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| Affiliation: | Ferraro:;Assistant Professor, Department of Economics, Andrew Young School of Policy Studies, Georgia State University, P. O. Box 3992, Atlanta, GA 30302-3992. Phone 1-404-651-1372, Fax 1-404-651-0425, E-mail Cummings:;Professor Emeritus, Department of Economics, Andrew Young School of Policy Studies, Georgia State University, P. O. Box 3992, Atlanta, GA 30302-3992. Phone 1-404-651-3963, Fax 1-404-651-0425, E-mail |
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| Abstract: | Does cultural diversity affect economic outcomes? We develop an experimental framework that complements ongoing research on this question. We vary the ethnic mix of bargaining sessions to study intercultural interactions among members of U.S. Hispanic and Navajo cultures. We control for demographic differences in our subject pools and elicit beliefs directly in order to differentiate between statistical discrimination and preference‐based discrimination. Hispanic and Navajo subjects behave differently, and their behavior is affected by the ethnic composition of the experimental session. Our experimental framework can shed light on economic behavior and outcomes in societies of mixed ethnicity, race, and religion. (JEL C78, C90, Z10) |
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