The Strength of Weak (Family) Ties: The Effects of Family Networks in High vs. Low Income Countries
نویسندگان
چکیده
Alesina and Giuliano (J. Econ. Growth, 15(2), 2010) illustrate that strong family ties lead to disruptive socio-economic outcomes including lower geographical mobility and reduced labor force participation of young and female individuals. We extend their analysis by arguing that the effect of strong family ties on economic behavior depends on a country’s level of economic and institutional development. This cross-country heterogeneity arises because strong family ties not only foster traditional family values (which have disruptive effects on economic outcomes), but also provide – especially in societies characterized by weak institutions and limited market access – economically valuable social networks. Empirical evidence using data from all currently available waves of the European and World Value Surveys (EVS/WVS) is supportive of our theoretical argument.
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