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Two Sides of the Same Coin: Re-examining Nepotism and Discrimination in a Segmented Society

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  • Andre Hofmeyr
  • Justine Burns

Abstract

We report the results from a series of trust games designed to distinguish racial discrimination from racial nepotism, played with a sample of high school students in Cape Town, South Africa. In contrast to the original work in this regard by Fershtman et al . (2005), we find considerably greater heterogeneity in the way that proposers respond to the revealed racial identity of their partner, with nepotism being a dominant behavior. However, while some proposers exhibit a nepotistic bias in their offers that favors in-group members on average, others exhibit a nepotistic strategy that favors out-group members. A consequence of this nepotism is that both efficiency and equity are reduced on average.

Suggested Citation

  • Andre Hofmeyr & Justine Burns, 2012. "Two Sides of the Same Coin: Re-examining Nepotism and Discrimination in a Segmented Society," Review of Social Economy, Taylor & Francis Journals, vol. 70(3), pages 344-374, August.
    • Handle: RePEc:taf:rsocec:v:70:y:2012:i:3:p:344-374
    DOI: 10.1080/00346764.2011.632321
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    References listed on IDEAS

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    1. Doubell Chamberlain & Servaas van der Berg, 2002. "Earnings functions, labour market discrimination and quality of education in South Africa," Working Papers 02/2002, Stellenbosch University, Department of Economics.
    2. Rulof Burger & Rachel Jafta, 2006. "Returns to Race: Labour Market Discrimination in Post-Apartheid South Africa," Working Papers 04/2006, Stellenbosch University, Department of Economics.
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