We show that the distinction between Self and Other, 'us' and 'them,' or in-group and out-group, affects significantly economic and social behavior. In a series of experiments with approximately 200 Midwestern students as our subjects, we found that they favor those who are similar to them on...

How and why has the wage distribution in U.S. grocery stores changed between 1984 and 1994? Unlike other industries in the time period, the important change in the wage distribution is not rising inequality, but the real wages fell across the entire wage distribution. Changes in labor market...