nep-soc New Economics Papers
on Social Norms and Social Capital
Issue of 2016‒07‒16
eleven papers chosen by
Fabio Sabatini
Università degli Studi di Roma “La Sapienza”

  1. Achieving the American Dream: Cultural Distance, Cultural Diversity and Economic Performance By Valeria Rueda; Guillaume Laval; Etienne Patin
  2. 'Cultural Persistence' of Health Capital: Evidence from European Migrants By Costa-Font, J.; Sato, A.
  3. Can War Foster Cooperation? By Michal Bauer; Christopher Blattman; Julie Chytilová; Joseph Henrich; Edward Miguel; Tamar Mitts
  4. Fear and Political Participation: Evidence from Africa By Kevin M. Morrison; Marc Rockmore
  5. Human Capital, Social Capabilities and Economic Growth By Muhammad Ali; Abiodun Egbetokun; Manzoor Hussain Memon
  6. Dynamic Effects of Co-Ethnic Networks on Immigrants' Economic Success By Michele Battisti; Giovanni Peri; Agnese Romiti
  7. Volunteering and perceived health. A European cross-countries investigation By Fiorillo, Damiano; Nappo, Nunzia
  8. Social capital, institutions and policymaking By Savioli, Marco; Patuelli, Roberto
  9. European Cities and Foreign Investment Networks By Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
  10. Relationship between past experience, social network participation and creative capacity: Vietnamese entrepreneurship survey By Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong
  11. Learning Dynamics Based on Social Comparisons By Juan I Block; Drew Fudenberg; David K Levine

  1. By: Valeria Rueda (Sciences Po and Pembroke College, Oxford); Guillaume Laval (Institut Pasteur); Etienne Patin (Institut Pasteur)
    Abstract: This article explores the role of individual cultural distance on income, using the genetic distance as a proxy for cultural distance. We show that cultural distance has heterogeneous predictive power.In particular, culturally distant individuals living in regions with other individuals from more trusting ancestries or less xenophobic ones are more likely to be economically successful. First generation migrants seem to be less likely to success the more culturally distant they are, but this e?ect vanishes as time spent in the USA increases. Our research challenges the static view that cultural di?erences are necessarily an obstacle to economic performance in the long-run. Our interpretation of the results is robust to the use of alternative measures for cultural distance.
    Keywords: Cultural Distance, Cultural Diversity, Genetics, Historical Persistence, Labor Participation, Social Capital.
    JEL: J61 N30 O15 Z13
    Date: 2016–02–22
  2. By: Costa-Font, J.; Sato, A.
    Abstract: Culture is an under-studied determinant of health production and seldom measured. This paper empirically examines the persistence and association of health capital assessments of first and second-generation migrants with that of their ancestral countries. We draw on European data from 30 countries, including over 90 countries of birth and control for timing of migration, selective migration and other controls including citizenship and cultural proxies. Our results show robust evidence of cultural persistence of health assessments. Culture persists, rather than fades, and further, appears to strengthen over generations. We estimate a one standard deviation increase in ancestral health assessment increases first generation migrant’s health assessments by an average of 16%, and that of second generation migrants between 11% and 25%. Estimates are heterogeneous by gender (larger for males) and lineage (larger for paternal lineage).
    Keywords: assimilation; health; health assessments; cultural persistence; first generation migrant; second generation migrant;
    JEL: I18 H23 Z13
    Date: 2016–06
  3. By: Michal Bauer (CERGE-EI and Charles University); Christopher Blattman (Columbia University, New York City and National Bureau of Economic Research, Cambridge, Massachusetts); Julie Chytilová (CERGE-EI and Charles University); Joseph Henrich (Harvard University, Cambridge, Massachusetts and CIFAR, Toronto, Ontario, Canada); Edward Miguel (University of California, Berkeley, California, and National Bureau of Economic Research, Cambridge, Massachusetts); Tamar Mitts (Columbia University, New York City, New York)
    Abstract: In the past decade, nearly 20 studies have found a strong, persistent pattern in surveys and behavioral experiments from over 40 countries: individual exposure to war violence tends to increase social cooperation at the local level, including community participation and prosocial behavior. Thus while war has many negative legacies for individuals and societies, it appears to leave a positive legacy in terms of local cooperation and civic engagement. We discuss, synthesize and reanalyze the emerging body of evidence, and weigh alternative explanations. There is some indication that war violence especially enhances in-group or “parochial” norms and preferences, a finding that, if true, suggests that the rising social cohesion we document need not promote broader peace.
    Date: 2016–07
  4. By: Kevin M. Morrison (University of Pittsburgh); Marc Rockmore (Clark University, Worcester)
    Abstract: Research finds that personal exposure to violence or crime increases political participation. The effects of fear, however, have not been studied. Since the number of victims is much smaller than those who are afraid of becoming a victim, this suggests an important but unexplored channel from crime to political participation. Moreover, if people who experience violence or crime are also afraid of future exposure, existing estimates conflate the effects of past experience with those of fear of future exposure. We find that fear of crime accounts for 10-23 percent of the effect previously attributed to direct exposure. We further find important differences between the effects of fear and victimization on political attitudes. Whereas victims of crimes have more authoritarian political attitudes, people who are fearful of crime are more supportive of democracy and equality, and hold other attitudes that are normally associated with rule of law and democracy.
    Date: 2016–07
  5. By: Muhammad Ali (Friedrich Schiller University Jena, Faculty of Economics and Business Administration); Abiodun Egbetokun (National Centre for Technology Management Federal Ministry of Science and Technology, Nigeria, and Tshwane University of Technology, Pretoria South Africa); Manzoor Hussain Memon (Social Policy and Development Centre (SPDC), Karachi, Pakistan, and Applied Economics Research Centre, University of Karachi, Pakistan)
    Abstract: In this paper we show that inconclusive results in previous empirical studies on human capital and growth might be due to omitted variable bias. Using data for about 130 countries, we show that after inclusion of variables related to the social capabilities concept of Abramovitz (1986) i.e. economic opportunities and quality of legal institutions, the human capital variable turns out to be significant. We also show that economic opportunities significantly moderate the relationship between human capital and growth. The results are robust to different variants of indices for economic opportunities and the quality of legal system.
    Keywords: Human Capital, Economic Growth, Economic Opportunities, Social Capabilities
    JEL: O15 O4
    Date: 2016–07–06
  6. By: Michele Battisti; Giovanni Peri; Agnese Romiti
    Abstract: This paper investigates how the size of co-ethnic networks at arrival affected the economic success of immigrants in Germany. Applying panel analysis with a large set of fixed effects and controls, we isolate the association between initial network size and long-run immigrant outcomes. Focusing on refugees – assigned to an initial location independently of their choice – allows a causal interpretation of the estimated coefficient. We find that immigrants initially located in places with larger co-ethnic networks are more likely to be employed at first, but have a lower probability of investing in human capital. In the long run they are more likely to be mis-matched in their job and to earn a lower wage.
    JEL: J24 J61 R23
    Date: 2016–07
  7. By: Fiorillo, Damiano; Nappo, Nunzia
    Abstract: In this paper, we study the effect of formal and informal volunteering on self-perceived health across 9 European countries after controlling, amongst other things, for socio-economic characteristics, social and cultural participation. We employ the 2006 wave of EU-SILC for estimating recursive trivariate probit models with instrumental variables. Our results show that although formal and informal volunteering are correlated with each other, they have a different impact on health. Formal volunteering has a significant positive effect on self-perceived health in the Netherlands, but none in other countries. By contrast, informal volunteering has a significant negative effect on self-perceived health in Austria, Finland, France, the Netherlands, Spain, and Italy.
    Keywords: Self-perceived health, formal and informal volunteering, social and cultural participation, recursive trivariate probit model, European countries
    JEL: C3 D64 I1 P5 Z10
    Date: 2014
  8. By: Savioli, Marco; Patuelli, Roberto
    Abstract: Economic processes, consisting of interactions between human beings, exploit the social capital of persons endowed with specific cultures, identities and education. By taking into account this complexity, the authors focus on the role of institutions and policymaking in the building of social capital and its relevance to the fulfilment of their objectives. Social capital, however, is elusive and has several dimensions with which to interpret its multifaceted functions in economics and society. The authors cannot forget that social capital is sometimes even undesirable for society, for instance when unethically used. Even so, it is widely accepted that social capital has stable and positive effects.
    Keywords: social capital,institutions,policymaker,education
    JEL: Z13 B52 D78
    Date: 2016
  9. By: Riccardo Crescenzi; Kerwin Datu; Simona Iammarino
    Abstract: Although one of the core questions in the study of multinational enterprises (MNEs) has been typically that of where their different operations take place, the spatial dimension of MNE investments and functions is still relatively underexplored in the literature. This paper investigates the networks formed by Foreign Direct Investment (FDI) by applying network analysis techniques drawn from the world city network literature. Data is extracted from the fDi Markets database to describe and analyse the geography of FDI flows between a set of 3,500 cities and towns within the European Union (EU) Member States and their neighbourhood. The paper identifies hierarchical patterns of relations between different types of locations, and gains a finer-scaled appreciation of sectoral and functional specialisations of different regions within Europe.
    Date: 2016–07
  10. By: Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong
    Abstract: The notions of entrepreneurship and creativity in developed economies, despite having gained attention among researchers, remain embryonic in numerous emerging economies. Being focused on entrepreneurs in a typical transitional and emerging market economy, Vietnam, this paper aims to empirically explore the influence that past entrepreneurial efforts may exert on the perceptions of entrepreneurs about their own creativity performance. The study also seeks to understand how entrepreneurs social networks contribute to perceived creativity capacity by entrepreneurs who participate in those societies. The empirical research results suggest that entrepreneurs with business experience and active networking engagement are more likely to believe in their own creativity. This knowledge and insights in turn offer some implications for addressing the lack of radical creativity among Vietnamese entrepreneurs.
    Keywords: Creativity/innovation; entrepreneurship; emerging economy; Vietnam
    JEL: M13 O33 P21 P27
    Date: 2016–07–08
  11. By: Juan I Block; Drew Fudenberg; David K Levine
    Date: 2016–06–30

This nep-soc issue is ©2016 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.
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