ABSTRACT
This chapter describes a particular type of social identity, referring to subjective beliefs about one's origins. Sociologists, and many political scientists, see the cognitive biases as being rooted in feelings of group threat, whereas economists and social psychologists tend to refer to in-group favouritism, as conceptualized by social identity theory. The chapter deals with network relations and discusses how ethno-structural diversity, in the form of ethnically clustered networks, lowers the potential for social control. It also deals with the nature of ethno-cultural differences, first in norms and values, and second in habits and practices. In keeping with their understanding of ethno-cultural diversity as heterogeneity of values and norms, economists frequently suggest as a potential explanation asymmetrically distributed preferences and the inability to agree on shared goals. The chapter discusses how the different theoretical explanations should be seen not as rival, but as potentially reinforcing elements of a comprehensive approach.
