nep-soc New Economics Papers
on Social Norms and Social Capital
Issue of 2010‒09‒25
twelve papers chosen by
Fabio Sabatini

  1. The embeddedness of social entrepreneurship: Understanding variation across local communities By Seelos, Christian; Mair, Johanna; Battilana, Julie; Dacin, M. Tina
  2. The Good, the Bad, and the Ordinary: Anti-Social Behavior in Profit and Non-Profit Organizations By Auriol, Emmanuelle; Brilon, Stefanie
  3. Neuroeconomics: Constructing Identity By John B. Davis
  4. Government size and trust By Yamamura, Eiji
  5. Social Networks, Job Search Methods and Reservation Wages: Evidence for Germany By Marco Caliendo; Ricarda Schmidl; Arne Uhlendorff
  6. Guanxi Management in Chinese Entrepreneurs: a Network Approach By Arribas Fernández Iván; Vila Gisbert José E.
  7. Key Players and Key Groups in Teams: A Network Approach Using Soccer Data By Sudipta Sarangi; Emre Unlu
  8. Algebraic Representation of Social Capital Matrix By Tariq Shah; Syed Akhter Hussain Shah; Eatzaz Ahmed
  9. Why we should all care about social institutions related to gender inequality By Branosa, Boris; Klasen, Stephan; Ziegler, Maria
  10. The social responsibility influence of corporations on sustainable development By Grigorescu, Adriana; Saseanu , Andreea
  11. Contract Enforcement by the Gods By Schumacher, Heiner; Hadnes, Myriam
  12. The Institutional Basis of Gender Inequality By Branisa, Boris; Ziegler, Maria; Klasen, Stephan

  1. By: Seelos, Christian (IESE Business School); Mair, Johanna (IESE Business School); Battilana, Julie (Harvard Business School); Dacin, M. Tina (Queen's School of Business)
    Abstract: Social enterprise organizations (SEOs) arise from entrepreneurial activities with the aim of achieving social goals. SEOs have been seen as alternative and/or complementary to the actions of governments and international organizations to address poverty and poverty-related social needs. Using a number of illustrative cases, we explore how variations in local institutional mechanisms shape the local "face of poverty" in different communities and how this relates to variations in the emergence and strategic orientations of SEOs. We develop a model of the productive opportunity space for SEOs as a basis of, and an inspiration for, further scholarly inquiry.
    Keywords: social entrepreneurship; Social mechanisms; poverty; opportunity; institutions;
    Date: 2010–05–03
  2. By: Auriol, Emmanuelle; Brilon, Stefanie
    Abstract: Intrinsic motivation of workers may arise from different individual motives. While some workers care about the mission of an organization and derive an intrinsic benefit from advancing this mission ("good" workers), others derive pleasure from some form of destructive or anti-social behavior ("bad" workers). We show that mission-oriented organizations can take advantage of the intrinsic motivation of good workers. Compared to profit-oriented organizations, lower bonus payments and lower monitoring are necessary in order to achieve a high output. However, as soon as there are bad workers, mission-oriented organizations may become more vulnerable to their anti-social behavior than profit-oriented organizations. We analyze the optimal wage contracts and monitoring levels for both types of organization and discuss appropriate measures of ex ante candidate screening to overcome the problems caused by bad workers. --
    Keywords: motivated agents,non-profit,sabotage,candidate selection
    JEL: D21 D23 L31
    Date: 2010
  3. By: John B. Davis (Department of Economics, Marquette University, and Amsterdam School of Economics, University of Amsterdam)
    Abstract: This paper asks whether neuroeconomics will make instrumental use of neuroscience to adjudicate existing disputes in economics or be more seriously informed by neuroscience in ways that might transform economics. The paper pursues the question by asking how neuroscience constructs an understanding of individuals as whole persons. The body of the paper is devoted to examining two approaches: Don Ross’s neurocellular approach to neuroeconomics and Joseph Dumit’s cultural anthropological science organization approach. The accounts are used to identify boundaries on single individual explanations. With that space Andy Clark’s external scaffolding view and Nathaniel Wilcox’s socially distributed cognition view are employed.
    Keywords: neuroeconomics, behavioral economics, neurocellular economics
    JEL: A12 B41
    Date: 2010
  4. By: Yamamura, Eiji
    Abstract: This paper uses individual level data (the Japanese General Social Survey) to examine how government size influences generalized trust. After controlling for the endogeneity of government size using instrumental variables, I found: (1) Using all samples, government size is not associated with generalized trust, and (2) After splitting the sample into workers and non-workers, government size does not influence generalized trust for non-workers whereas it significantly reduces generalized trust for workers. This suggests that workers, through their work experience, might have to face greater bureaucratic red tape coming from “larger government”, leading to negative externality effects on relationships of trust in the labor market.
    Keywords: Government size; Generalized trust; Employment.
    JEL: D30 Z13
    Date: 2010–09–03
  5. By: Marco Caliendo; Ricarda Schmidl; Arne Uhlendorff
    Abstract: In this paper we analyze the relationship between social networks and the job search behavior of unemployed individuals. It is believed that networks convey useful information in the job search process such that individuals with larger networks should experience a higher productivity of informal search. Hence, job search theory suggests that individuals with larger networks use informal search channels more often and substitute from formal to informal search. Due to the increase in search productivity, it is also likely that individuals set higher reservation wages. We analyze these relations using a novel data set of unemployed individuals in Germany containing extensive information on job search behavior and direct measures for the social network of individuals. Our findings confirm theoretical expectations. Individuals with larger networks use informal search channels more often and shift from formal to informal search. We find that informal search is mainly considered a substitute for passive, less cost intensive search channels. In addition to that, we find evidence for a positive relationship between the network size and reservation wages.
    Keywords: job search behavior, unemployment, social networks
    JEL: J64
    Date: 2010
  6. By: Arribas Fernández Iván (University of Valencia; Ivie); Vila Gisbert José E. (University of Valencia)
    Abstract: This working paper analyzes the role played by two dimensions of entrepreneurs’ private social capital in the performance of an entrepreneurial venture: local size and degree of preferential linking. To fulfill this objective, we build a bi-dimensional measure of social capital based on network models and a methodology to estimate this measure for any group of entrepreneurs. Based on a survey of service entrepreneurs who launched their business in the city of Shanghai, we show that social capital or guanxi is relevant for business success. Moreover, we show that roles played by each dimension are quite different. A large local network, i.e. a large set of agents able to advise or support the entrepreneur, increases the chances of survival of the new venture but has no impact to make it go beyond a self-employment business. To reach this level, entrepreneurs need to generate a high degree of preferential attachment; in other words, they need to generate a social network that allows them to get advice and support from those agents placed in critical positions within Shanghai’s global socio-economic network. This finding has relevant political and managerial implications and generates new questions to be answered in future research.
    Keywords: Social capital, network analysis, entrepreneurship in China
    Date: 2010–09–20
  7. By: Sudipta Sarangi; Emre Unlu
    Abstract: This paper provides a way of evaluating a player's contribution to her team and relates her effort to her salaries. We collect data from UEFA Euro 2008 Tournament and construct the passing network of each team. Then we determine the key player in the game while ranking all the other players too. Next, we identify key groups of players to determine which combination of players played more important role in the match. Using 2010 market values and observable characteristics of the players, we show that players having higher intercentrality measures regardless of their field position have significantly higher market values.
    Keywords: Social networks, team game, centrality measures
    JEL: A14 C72 D85
    Date: 2010
  8. By: Tariq Shah; Syed Akhter Hussain Shah; Eatzaz Ahmed (Pakistan Institute of Development Economics)
    Abstract: This paper proposes a mathematical model based on a Boolean algebra involving a 4×4 social capital matrix [Shah (2008)], that emerges through interaction within and across individuals, communities, institutions and state. The framework provides a coding system for the existence or otherwise of various categories of social interaction. The model illustrates that social interaction can be neatly described in a format that facilitates the interpretation of social intra- and interactions among the four types of players in generating economic activity.
    Keywords: Social Capital (Matrix), Linear Space, Interactive Systems, Boolean Algebra
    JEL: A13 D78 Z13
    Date: 2010
  9. By: Branosa, Boris; Klasen, Stephan; Ziegler, Maria
    Abstract: Institutions are a major factor explaining development outcomes. This study focuses on social institutions related to gender inequality understood as long-lasting norms, values and codes of conduct that shape gender roles, and presents evidence on why they matter for development. We derive hypotheses from existing theories and empirically test them at the cross-country level with linear regressions using the newly created Social Institutions and Gender Index (SIGI) and its subindices as measures for social institutions. We find that apart from geography, political system, religion, and the level of economic development, one has to consider social institutions related to gender inequality to better account for differences in development. Our results show that social institutions that deprive women of their autonomy and bargaining power in the household, or that increase the private costs and reduce the private returns to investments into girls, are associated with lower female education, higher fertility rates and higher child mortality. Moreover, social institutions related to gender inequality are negatively associated with governance measured as rule of law and voice and accountability. --
    Keywords: Social institutions,SIGI,Gender inequality,Fertility,Child mortality,Female education,Governance
    JEL: D63 I10 I20 H1 J16
    Date: 2010
  10. By: Grigorescu, Adriana; Saseanu , Andreea
    Abstract: The social responsibility of corporations is a concept that refers to the debt which companies (as social actors) has with respect to all the parties involved in the development of actions presupposed by their economic activity. The concept refers to all categories of companies, from micro-enterprises, up to multinational companies. The companies’ task in the social responsibility of corporations refers to the fact that the respective company has to act bearing in mind the consequences, positive or negative, caused by their activities into the society, the company having the obligation of minimizing the negative effects.
    Keywords: social responsibility; sustainable development; companies behavior
    JEL: M14 L50
    Date: 2010–05–14
  11. By: Schumacher, Heiner; Hadnes, Myriam
    Abstract: We propose a theory that explains why rational agents start to believe in a causal relationship between unrelated events. Agents send and collect messages through a communication network. If they are convinced of a relationship between two events, they send messages confirming their belief with higher probability than messages contradicting it. The network aggregates this communication bias over individuals. Therefore, agents may find a strong relationship between unrelated events even if the communication bias is very small. We apply this model to an informal economy where the fear of punishment by supernatural forces prevents agents from cheating others. --
    Keywords: Informal Contract Enforcement,Communication,Learning,Networks
    JEL: C72 L14
    Date: 2010
  12. By: Branisa, Boris; Ziegler, Maria; Klasen, Stephan
    Abstract: In this paper we construct the Social Institutions and Gender Index (SIGI) and its five subindices Family code, Civil liberties, Physical integrity, Son Preference and Ownership rights using variables of the OECD Gender, Institutions and Development database. Instead of measuring gender inequality in education, health, economic or political participation, these indices allow a new perspective on gender issues in developing countries. The SIGI and the subindices measure long-lasting social institutions which are mirrored by societal practices and legal norms that frame gender-relevant meanings and form the basis of gender roles. The subindices measure each one dimension of the concept and the SIGI combines the subindices into a multidimensional index of deprivation of women caused by social institutions. Methodologically, the SIGI is inspired by the Foster-Greer-Thorbecke poverty measures. It offers a new way of aggregating gender inequality in several dimensions, penalizing high inequality in each dimension and allowing only for partial compensation between dimensions. The SIGI and the subindices are useful tools to identify countries and dimensions of social institutions that deserve attention. Empirical results confirm that the SIGI provides additional information to that of other well-known gender-related indices. --
    Keywords: SIGI,Composite index,Gender inequality,Social institutions,OECD-GID database
    JEL: D63 I39 J16
    Date: 2010

This nep-soc issue is ©2010 by Fabio Sabatini. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.