nep-soc New Economics Papers
on Social Norms and Social Capital
Issue of 2011‒08‒15
twelve papers chosen by
Fabio Sabatini

  1. From social capital to health - and back By L. Rocco;; F. Elena;; M. Suhrcke;
  2. Local social capital and geographical mobility . By Wasmer, Etienne; Janiak, Alexandre; David, Quentin
  3. Structural social capital and health in Italy By D. Fiorillo;; F. Sabatini;
  4. Emotions, Sanctions and Cooperation By Mateus Joffily; David Masclet; Charles N. Noussair; Marie-Claire Villeval
  5. Substitution Between Individual and Cultural Capital: Pre-Migration Labor Supply, Culture and US Labor Market Outcomes Among Immigrant Woman By Blau, Francine D.; Kahn, Lawrence M.
  6. The Dynamics of Interfirm Networks along the Industry Life Cycle: The Case of the Global Video Games Industry 1987-2007 By Pierre-Alexandre Balland; Mathijs de Vaan; Ron Boschma
  8. A Social Network for Trade and Inventories of Stock during the South Sea Bubble By Gary S. Shea
  9. Intention-Based Reciprocity and the Hidden Costs of Control By Ferdinand von Siemens
  10. Lies and Biased Evaluation: A Real-Effort Experiment By Rosaz, Julie; Villeval, Marie Claire
  11. The Economic Returns to Membership of a Dairy Discussion Group: Evidence from the Irish National Farm Survey By Hennessy, Thia; Lapple, Doris; Newman, Carol F.
  12. The Social Enterprise: A Literature Review By Matei, Lucica; Sandu, Cristina

  1. By: L. Rocco;; F. Elena;; M. Suhrcke;
    Abstract: We assess the causal relationship between health and social capital, measured by generalized trust, both at the individual and the community level. The paper contributes to the literature in two ways: it tackles the problems of endogeneity and reverse causation between social capital and health by estimating a simultaneous equation model, and it explicitly accounts for mis-reporting in self reported trust. The relationship is tested using data from the first four waves of the European Social Survey for 26 European countries, supplemented by regional data from the Eurostat. Our estimates show that a causal and positive relationship between selfperceived health and social capital does exist and that it acts in both directions. In addition, the magnitude of the structural coefficients suggests that individual social capital is a strong determinant of health, while community level social capital plays a considerably smaller role in determining health.
    Date: 2011–07
  2. By: Wasmer, Etienne (Centre de recherche en économie de Sciences Po); Janiak, Alexandre (Departamento de Ingenieria Industrial (DII)); David, Quentin (Département de Droit de l'UL)
    Abstract: In the North of Europe, club membership is higher than in the South, but the frequency of contacts with friends, relatives and neighbors is lower. We link this fact to another one: the low geographical mobility rates in the South of Europe relative to the North. To interpret these facts, we build a model of local social capital and mobility. Investing in local ties is rational when workers do not expect to move to another region. We find that observationally close individuals may take different paths characterized by high local social capital, low mobility and high unemployment, vs. low social capital, high propensity to move and higher employment probability. Employment protection reinforces the accumulation of local social capital and thus reduces mobility. European data supports the theory: within a country and at the individual level, more social capital is associated with lower mobility.
    Date: 2010–09
  3. By: D. Fiorillo;; F. Sabatini;
    Abstract: This paper presents the first empirical assessment of the causal relationship between social capital and health in Italy. The analysis draws on the 2000 wave of the Multipurpose Survey on Household conducted by the Italian Institute of Statistics on a representative sample of the population (n = 50,618). Our measure of social capital is the frequency of meetings with friends. Based on probit and instrumental variables estimates, we find that higher levels of social capital increase perceived good health.
    Keywords: health, instrumental variables, income, social interactions, social capital, Italy.
    JEL: I12 I18 Z1
    Date: 2011–07
  4. By: Mateus Joffily; David Masclet; Charles N. Noussair; Marie-Claire Villeval
    Abstract: We use skin conductance responses and self-reports of hedonic valence to study the emotional basis of cooperation and punishment in a social dilemma. Emotional reaction to free-riding incites individuals to apply sanctions when they are available. The application of sanctions activates a "virtuous emotional circle" that accompanies cooperation. Emotionally aroused cooperators relieve negative emotions when they punish free riders. In response, the free-riders experience negative emotions when punished, and increase their subsequent level of cooperation. The outcome is an increased level of contribution that becomes the new standard or norm. For a given contribution level, individuals attain higher levels of shared satisfaction when sanctioning institutions are in place.<p> Document available soon. <P>Dans cette étude, nous avons utilisé des mesures physiologiques de conductance électrodermales ainsi que des mesures d’auto déclaration relatives aux émotions dans le cadre d’un jeu de contribution volontaire au financement de biens publics avec opportunité de sanction. Les émotions jouent un rôle à la fois sur les décisions de contribution et de sanction. La réaction émotionnelle à l’observation de comportement opportuniste conduit les agents à sanctionner. En retour, les passagers clandestins font l’expérience d’émotions négatives lorsqu’ils sont sanctionnés et augmentent leur niveau de contribution en conséquence.<p> Document disponible bientôt.
    Keywords: Emotions, Sanctions, Cooperation, Experiment, Skin Conductance Responses, Émotions, sanctions, coopération, expérience, mesures physiologiques de conductance électrodermales
    Date: 2011–01–01
  5. By: Blau, Francine D. (Cornell University); Kahn, Lawrence M. (Cornell University)
    Abstract: In this paper we use New Immigrant Survey data to investigate the impact of immigrant women's own labor supply prior to migrating and female labor supply in their source country to provide evidence on the role of human capital and culture in affecting their labor supply and wages in the United States. We find, as expected, that women who migrate from countries with relatively high levels of female labor supply work more in the United States. Moreover, most of this effect remains when we further control for each woman’s own labor supply prior to migrating, which itself also strongly affects labor supply in the United States. Importantly, we find a significantly negative interaction between pre-migration labor supply and source country female labor supply. We obtain broadly similar effects analyzing the determinants of hourly earnings among the employed in the United States, although the results are not always significant. These results suggest an important role for culture and norms in affecting immigrant women's labor supply, since the effect of source country female labor supply on immigrant women's US work hours is still strong even controlling for the immigrant’s own pre-migration labor supply. The negative interaction effects between previous work experience and source country female labor supply on women's US work hours and wages suggest that cultural capital and individual job-related human capital act as substitutes in affecting preparedness for work in the US.
    Keywords: gender, immigration, labor supply, human capital
    JEL: J16 J22 J24 J61
    Date: 2011–07
  6. By: Pierre-Alexandre Balland; Mathijs de Vaan; Ron Boschma
    Abstract: In this paper, we study the formation of network ties between firms along the life cycle of a creative industry. We focus on three drivers of network formation: i) network endogeneity which stresses a path-dependent change originating from previous network structures, ii) five forms of proximity (e.g. geographical proximity) which ascribe tie formation to the similarity of actors' attributes; and (iii) individual characteristics which refer to the heterogeneity in actors capabilities to exploit external knowledge. The paper employs a stochastic actor-oriented model to estimate the - changing - effects of these drivers on inter-firm network formation in the global video game industry from 1987 to 2007. Our findings indicate that the effects of the drivers of network formation change with the degree of maturity of the industry. To an increasing extent, video game firms tend to partner over shorter distances and with more cognitively similar firms as the industry evolves.
    Keywords: network dynamics, industry life cycle, proximity, creative industry, video game industry, stochastic actor-oriented model
    JEL: D85 B52 O18
    Date: 2011–08
  7. By: Keogh, Sinead; Cullinan, John
    Abstract: Understanding the determinants of farm householdsâ social engagement patterns in rural communities is important for public policy programs that seek to improve the well-being of the rural population and promote rural sustainability. Within this context, this paper examines the factors that influence both the participation in, and the number of hours dedicated to, social, community and leisure activities among farm operators and their spouse/partner in a region in the West of Ireland. The theoretical underpinnings of this research are an extension of Beckerâs (1965, 1974) and Gronauâs (1977) agricultural household models, whereby households maximise utility subject to a set of constraints, household income and time endowment. The study employs a time-use diary survey, combined with an individual and household survey, to collect data from farm households in counties Galway, Mayo and Roscommon. A Craggs double hurdle model is used to estimate the predictors of time-use and the number of hours spent participating in a range of off-farm activities.
    Keywords: Rural sustainability, Agricultural household model, Time use survey, Craggs two-step model., Community/Rural/Urban Development,
    Date: 2011–04
  8. By: Gary S. Shea
    Abstract: A social network of stock trading is defined for the notorious South Sea Bubble of 1720. It is a flow network defined in terms of pass-through and core pass-through, which have convenient properties with respect to inventories. These are all useful concepts when examining a liquidity crisis, financial intermediation and the changing social structure of trade. We find that there may have been a liquidity crisis suffered by goldsmith bankers before the Bubble, a gradual path towards dis-intermediation after the Bubble and a switch from intermediation based upon brokerage to intermediation based upon dealership.
    Keywords: East India Company; South Sea Company; Bank of England; social networks; financial intermediation; inventories; liquidity.
    JEL: N23 G13
    Date: 2011–07
  9. By: Ferdinand von Siemens (University of Amsterdam)
    Abstract: Empirical research suggests that - rather than improving incentives - exerting control can reduce workers' performance by eroding motivation. The present paper shows that intention-based reciprocity can cause such motivational crowding-out if individuals differ in their propensity for reciprocity and preferences are private information. Not being controlled might then be considered to be kind, because not everybody reciprocates not being controlled with high effort. This argument stands in contrast to existing theoretical wisdom on motivational crowding-out that is primarily based on signaling models.
    Keywords: extrinsic and intrinsic motivation; crowding-out; intention-based reciprocity
    JEL: A13 C70 D63 D82 L20
    Date: 2011–08–09
  10. By: Rosaz, Julie (University of Lyon 2); Villeval, Marie Claire (CNRS, GATE)
    Abstract: This paper presents the results of a laboratory experiment in which workers perform a real-effort task and supervisors report the workers’ performance to the experimenter. The report is non verifiable and determines the earnings of both the supervisor and the worker. We find that not all the supervisors, but at least one third of them bias their report. Both selfish black lies (increasing the supervisor's earnings while decreasing the worker's payoff) and Pareto white lies (increasing the earnings of both) according to Erat and Gneezy (2009)'s terminology are frequent. In contrast, spiteful black lies (decreasing the earnings of both) and altruistic white lies (increasing the earnings of workers but decreasing those of the supervisor) are almost non-existent. The supervisors' second-order beliefs and their decision to lie are highly correlated, suggesting that guilt aversion plays a role.
    Keywords: evaluation, lie-aversion, guilt aversion, self-image, deception, lies, experiments
    JEL: C91 D82 M52
    Date: 2011–07
  11. By: Hennessy, Thia; Lapple, Doris; Newman, Carol F.
    Abstract: In December 2009 the Irish Department of Agriculture launched the Dairy Efficiency Programme. The Programme, which is operated through a series of discussion groups, is designed to promote technology transfer to dairy farmers. Drawing on National Farm Survey data from 2009, the purpose of this paper is to quantify the economic return to membership of dairy discussion groups. An endogenous switching regression model is specified for over 300 dairy farms to assess the impact of discussion group participation on farm gross margins. The results indicate self-selection into discussion groups, suggesting that âbetterâ farmers tend to participate. Generally, younger farmers who operate larger farms are more likely to join discussion groups. Discussion group members have higher gross margins than non-members, but non-members could increase their gross margins if they join discussion groups. Overall, the findings confirm positive returns to discussion group membership, thus supporting the Dairy Efficiency Programme.
    Keywords: Endogenous switching regression model, Discussion group membership, Dairy Efficiency Programme, Livestock Production/Industries,
    Date: 2011–04
  12. By: Matei, Lucica; Sandu, Cristina
    Abstract: The transformations occurring in the last years in the international area have strongly affected the European administrative space. The national administrations are facing multiple problems concerning the financial, human, technological, etc. resources, and in this context, the public services must continue applying the principles of continuity and adaptability to meet the needs of citizens. Concepts such as social entrepreneurship, social business, social enterprise, public -private partnership become increasingly more important, models of good practice being more visible in Western Europe comparing with Central-Eastern Europe or South-Eastern Europe. The aim of this paper is to offer a literature perspective on the concept of social enterprise, which will lead to a comprehensive approach on the topic. The study will use an exploratory research method and data collection, reflecting the differences between Western, Central-Eastern, South-Eastern Europe literature, based on documentation in international data base and journal article reviews. Finally, the study will be able to underline the key points of social enterprise theories, thus proving the applicability of the concept in practice and the role of social enterprise in the development of European administrative space, with special focus on the Balkan area.
    Keywords: the Balkans; literature review; social enterprise
    Date: 2011–08–06

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