Social organization in an endogenous growth model

We develop an endogenous growth model in which individuals form matches in order to consume goods that are not explicitly traded. The matching process endogenously generates a concern for relative wealth and is thereby benefi cial for capital accumulation and economic growth. We then study how social segmentation in the matching process affects economic growth. Under strong segmentation, social competition over mates occurs inside homogeneous grou ps. This homogeneity increases the severity of the "rat race" of wealth acc umulation and fosters economic growth.