Abstract
We present the results of an experiment that attempts to measure the impact of majority and minority groups, and high status and low status groups, on well-being, cooperation and social capital. In the experiment, group membership is induced artificially, subjects interact with insiders and outsiders in trust games and periodically enter markets where they can trade group membership. We find that trust falls with groups because of discrimination against outsiders. Against this, however, there is evidence that low group status and minority subjects are less satisfied, and that low status subjects trust less other low status subjects.
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