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Unfamiliarity: One of the most common causes of racism is unfamiliarity. Some people become fearful of what they don't know or understand. If a child has grown up with people from only their race, then the child is more likely to become racist towards that race.
Institutional Racism. Institutional racism is a pattern of social institutions â such as governmental organizations, schools, banks, and courts of law â giving negative treatment to a group of people based on their race. Institutional racism leads to inequality; sociologists use the concept to explain why some people face unequal treatment or occupy unequal statuses.