Racial stereotypes, stigma and trust in post-apartheid South Africa

This paper examines the impact of racial identity on behaviour in trust games played by high school students in South Africa. There is a systematic pattern of distrust towards Black partners, even by Black proposers, largely attributable to mistaken behavioural stereotypes. However, consistent with notions of racial stigma, White proposers are significantly less likely to engage in a strategic interaction at all when paired with a Black partner, thereby allowing mistaken racial stereotypes to remain entrenched.