The new paper, just published in the journal Social Psychological and Personality Science, analysed 660 studies conducted across 36 countries to solve the question.
"We know that around the world there are countries that are more egalitarian or more hierarchical, so we wanted to test the impact that the wider society had on the effectiveness of this strategy."
The researchers assessed the degree of inequality in the 36 countries in the study by using two measures.
The first, the Social Dominance Orientation scale, asked citizens to rate whether they believe all groups are equal, and the second, the Schwartz Value Survey, looked at how highly people value principles of equality.
Ultimately, the researchers found inequality could have a strong influence.
"It's a strategy that works well in more egalitarian societies - those that are more equal and value equality," Fischer said.
"On the other hand, in societies where there is less equality, or it is less valued, the impact of intergroup interaction was less effective at reducing prejudice, and at times could even have the opposite effect."
A complicating factor was that not only were there differences between societies, but also individual societies were not fixed, and over time both the degree of equality and the importance placed on equality could vary.
"We started this project on the Contact Hypothesis because we wanted to use social psychology to understand, and help address, some of the big problems in society.
"The results of this study can help us better understand some of the contributing factors in what drives inequality and prejudice."