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This paper measures the economic impact of social pressure to share income with kin and neighbors in rural Kenyan villages. The authors conduct a lab experiment in which they randomly vary the observability of investment returns. The goal is to test whether subjects reduce their income in order to keep it hidden. The analysis finds that women adopt an investment strategy that conceals the size of their initial endowment in the experiment, although that strategy reduces their expected earnings. This effect is largest among women with relatives attending the experiment. Parameter estimates suggest that women behave as though they expect to be pressured to share four percent of their observable income with others, and substantially more when close kin can observe income directly. Although this paper provides experimental evidence from a single African country, observational studies suggest that similar pressure from kin may be prevalent in many rural areas throughout Sub-Saharan Africa.
Debt Markets --- Economic Theory & Research --- Emerging Markets --- Investment and Investment Climate --- Investment returns --- Investment strategy --- Labor Policies --- Mutual insurance arrangements --- Public Sector Development --- Risk-pooling arrangements --- Social Development --- Social pressure
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This paper measures the economic impact of social pressure to share income with kin and neighbors in rural Kenyan villages. The authors conduct a lab experiment in which they randomly vary the observability of investment returns. The goal is to test whether subjects reduce their income in order to keep it hidden. The analysis finds that women adopt an investment strategy that conceals the size of their initial endowment in the experiment, although that strategy reduces their expected earnings. This effect is largest among women with relatives attending the experiment. Parameter estimates suggest that women behave as though they expect to be pressured to share four percent of their observable income with others, and substantially more when close kin can observe income directly. Although this paper provides experimental evidence from a single African country, observational studies suggest that similar pressure from kin may be prevalent in many rural areas throughout Sub-Saharan Africa.
Debt Markets --- Economic Theory & Research --- Emerging Markets --- Investment and Investment Climate --- Investment returns --- Investment strategy --- Labor Policies --- Mutual insurance arrangements --- Public Sector Development --- Risk-pooling arrangements --- Social Development --- Social pressure
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Just as we learn from, influence, and are influenced by others, our social interactions drive economic growth in cities, regions, and nations--determining where households live, how children learn, and what cities and firms produce. From Neighborhoods to Nations synthesizes the recent economics of social interactions for anyone seeking to understand the contributions of this important area. Integrating theory and empirics, Yannis Ioannides explores theoretical and empirical tools that economists use to investigate social interactions, and he shows how a familiarity with these tools is essential for interpreting findings. The book makes work in the economics of social interactions accessible to other social scientists, including sociologists, political scientists, and urban planning and policy researchers. Focusing on individual and household location decisions in the presence of interactions, Ioannides shows how research on cities and neighborhoods can explain communities' composition and spatial form, as well as changes in productivity, industrial specialization, urban expansion, and national growth. The author examines how researchers address the challenge of separating personal, social, and cultural forces from economic ones. Ioannides provides a toolkit for the next generation of inquiry, and he argues that quantifying the impact of social interactions in specific contexts is essential for grasping their scope and use in informing policy. Revealing how empirical work on social interactions enriches our understanding of cities as engines of innovation and economic growth, From Neighborhoods to Nations carries ramifications throughout the social sciences and beyond.
Social integration --- Economics --- Economic sociology --- Socio-economics --- Socioeconomics --- Sociology of economics --- Inclusion, Social --- Integration, Social --- Social inclusion --- Sociological aspects. --- Social aspects --- Social interaction --- Human interaction --- Interaction, Social --- Symbolic interaction --- Exchange theory (Sociology) --- Psychology --- Social psychology --- Sociology --- Economic aspects. --- Belonging (Social psychology) --- Economic aspects --- Sociological aspects --- E-books --- Social interaction - Economic aspects --- Economics - Sociological aspects --- AlonsoЍillsЍuth model. --- Duranton model. --- LucasВossi-Hansberg model. --- Thomas Schelling. --- Zipf's law. --- agglomeration. --- archipelago. --- autarkic cities. --- city geometry. --- city size distribution. --- city size. --- city. --- community choice. --- community. --- contextual effects. --- decisions. --- diversification. --- econometrics. --- economic geography. --- economic growth. --- economic integration. --- economics. --- empirics. --- firms. --- geography. --- graph theory. --- hierarchy principle. --- housing. --- human capital spillovers. --- industrial specialization. --- intercity trade. --- job matching. --- labor market frictions. --- localization. --- location decisions. --- microneighborhood. --- neighborhood choice. --- neighborhood effects. --- neighborhood. --- physical capital. --- physical space. --- productivity. --- racial preferences. --- risk pooling. --- site rents. --- social effects. --- social interactions. --- social learning. --- social networks. --- social structure. --- spatial aggregation. --- spatial clustering. --- spatial econometrics. --- spatial economic activity. --- spatial equilibrium. --- spatial interactions. --- spatial structure. --- synthetic neighborhood. --- total factor productivity. --- urban archipelago. --- urban economy. --- urban evolution. --- urban expansion. --- urban externalities. --- urban growth. --- urban infrastructure. --- urban networks. --- urban social fabric. --- urban spatial structure. --- urban specialization. --- urban structure. --- urban transition. --- urban transportation. --- urban wage premium. --- urbanization.
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