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The present article examines how the salience of group membership can moderate or diffuse feelings of stigmatization for members of racial and ethnic minorities. A series of studies is presented that demonstrate that the development of a common group identity can diffuse the effects of stigmatization, improve intergroup attitudes, and enhance institutional satisfaction and commitment among college students and faculty. Strategies and interventions designed to address the effects of stigmatization, however, need to consider the different value and importance of racial and ethnic group identities for Whites and for people of color.