Abstract
A growing body of evidence demonstrates that laws and institutions shape social norms — not only through enforcement but through their signalling function: communicating what is socially acceptable and legitimising or delegitimising group identities in the public sphere. This signalling effect is theorised to be especially powerful when institutional signals are reinforced by religious authority, yet causal evidence from low-institutional-legitimacy, high-religious-salience contexts remains scarce. In contexts such as Pakistan, where the credibility of secular state institutions is constrained and Islamic authority operates as the primary mechanism of norm legitimation, understanding how religious framing modulates the effect of institutional signals on public behaviour is both theoretically important and practically urgent.
This study provides the first large-scale randomised experimental test of this mechanism, exploiting the live and unresolved legal context of Pakistan's Transgender Persons (Protection of Rights) Act 2018 — currently under Supreme Court review following its partial annulment by the Federal Shariat Court on Islamic grounds in 2023. Approximately 2,000–3,000 adults across urban localities in Lahore are randomly assigned to one of five conditions: a control condition receiving no institutional signal, or one of four vignette treatments describing an anticipated 2027 Supreme Court ruling either upholding or annulling the Act, with or without explicit religious framing drawn from real institutional discourse — the Council of Islamic Ideology's prior endorsement of the Act as consistent with Islamic principles, or the Federal Shariat Court's Quranic jurisprudential reasoning against it.
The study measures whether and how these signals shift: perceived descriptive and injunctive social norms regarding transgender inclusion; personal attitudes toward transgender individuals across social, economic, and educational domains; pluralistic ignorance — the gap between personal attitudes and perceived social norms; labour market perceptions including perceived employability of transgender individuals; and real behavioural outcomes including incentivised donation allocation, voluntary enrolment in transgender-staffed household and tutoring services, and willingness to publicly associate with transgender inclusion through information sharing.
A difference-in-differences/ANCOVA design on pre- and post-treatment institutional trust measures tests whether judicial signals shift the very legitimacy of the institutions sending them. Heterogeneity analysis examines whether religious framing amplifies institutional signals differentially for high-religiosity respondents, whether this amplification is symmetric across inclusive and exclusionary signals, and whether prior knowledge of the Act moderates treatment effects through belief updating.
The study contributes to three literatures: the economics of social norm formation and institutional signalling; the political economy of religion and governance in Muslim-majority societies; and the economics of discrimination and labour market exclusion of stigmatised minorities. Findings have direct policy relevance for the design of judicial communication strategies, civil society advocacy, and inclusion programming in contexts where conventional rights-based institutional legitimacy is weak and religious authority functions as the primary vehicle for norm change.