nep-soc New Economics Papers
on Social Norms and Social Capital
Issue of 2018‒10‒22
nine papers chosen by
Fabio Sabatini
Università degli Studi di Roma “La Sapienza”

  1. Culture and Colonial Legacy: Evidence from Public Goods Games By Chaudhary, L.; Rubin, J.; Iyer, S.; Shrivastava, A.
  2. Immigration and Nationalism: The Importance of Identity By Francesco Flaviano Russo
  3. The Shape of Warm Glow: Field Experimental Evidence from a Fundraiser By Carpenter, Jeffrey P.
  4. The impact of international immigration and cultural diversity on economic performance, public attitudes and political outcomes in European regions By Chasapopoulos, Panagiotis
  5. Trust and the household-bank relationship By Ampudia, Miguel; Palligkinis, Spyros
  6. Trust in other people and the usage of peer platform markets By Carin van der Cruijsen, Maurice Doll and Frank van Hoenselaar
  7. The Role of Institutions and Immigrant Networks in Firms’ Offshoring Decisions* By Simone Moriconi; Giowanni Peri; Dario Pozzoli;
  8. Social Preferences, Public Good Provision, Social Capital and Positional Concerns: Empirical Evidence from the South Caucasus By Armenak Antinyan; Vardan Baghdasaryan; Aleksandr Grigoryan
  9. Interdependent Hazards, Local Interactions, and the Return Decision of Recent Migrants By Bijwaard, Govert; Schluter, Christian

  1. By: Chaudhary, L.; Rubin, J.; Iyer, S.; Shrivastava, A.
    Abstract: We conduct a public goods game in three small towns in the Indian state of Rajasthan. Due to historical military conquest, until 1947 these towns were on opposite sides of a colonial border separating British India from the Princely States. Our research design offers a treatment comparison between the towns of (British) Kekri and (Princely) Sarwar, and a control comparison between Princely Sarwar and Shahpura. We find that participants from (British) Kekri are more co-operative in mixed-town groups. The differences are driven by individuals with family ties to the towns, highlighting the enduring effects of colonial rule on co-operation norms.
    Keywords: cultural transmission, colonialism, public goods game, natural experiment, lab-in-the- eld experiment, India
    JEL: C91 C93 C71 H41 H73 N35 N45 O17 Z1
    Date: 2018–10–01
  2. By: Francesco Flaviano Russo (Università di Napoli Federico II and CSEF)
    Abstract: Increased immigration in Italy has been coupled with a change in the composition of the stock of immigrants by nationality. Migrants that come from different coun- tries and cultures bring with them different languages, habits, norms, religions and, in general, interact differently with the local population, thereby generating different re- sponses to immigration. I study the relationship between this changes in the identity of the migrants and the electoral outcomes in Italy computing several measures of distance between immigrants and natives with respect to the language spoken, to religion and to genetic factors that, being correlated with the vertical transmission of norms and values, proxy for a wide range of both cultural and individual traits. I find that the increased distance between immigrants and natives is associated with more votes for nationalist, anti-immigration political parties.
    Keywords: Elections, Culture, Language, Religion.
    JEL: D72 J61
    Date: 2018–10–13
  3. By: Carpenter, Jeffrey P. (Middlebury College)
    Abstract: Theory commonly posits agents who care both for the level of provision of a public good and the extent to which they personally contribute to the cause. Simply put, agents feel some "warm glow" from the donations they make. I discuss a fundraiser devised to exogenously vary the incentive to give and identify the structural parameters of warm glow. Estimates suggest that for participants claiming warm glow as their primary motivation, its shape is increasing and concave. Nevertheless, welfare analysis suggests that warm glow is unlikely to be the only important factor in the decision to give.
    Keywords: public good, altruism, warm glow, structural estimate, philanthropy, pari mutuel lottery, fundraising, field experiment, survey validation
    JEL: H41 D03 D64 C93
    Date: 2018–08
  4. By: Chasapopoulos, Panagiotis (Tilburg University, School of Economics and Management)
    Abstract: The dissertation consists of three empirical studies in the field of International Immigration. The first chapter examines whether the effect of cultural diversity on economic performance of European regions is influenced by the level of generalized social trust and individuals’ trust in public institutions. The second chapter investigates how the origin and the skill level of immigrants in European regions affect natives’ attitudes toward them. The last chapter examines the impact of international immigration on electoral support for the radical right in Dutch municipalities.
    Date: 2018
  5. By: Ampudia, Miguel; Palligkinis, Spyros
    Abstract: We examine the role of trust in households’ decisions to hold a bank account and to switch to a new bank. We explore Italian household-level data that contain restricted information on the banks that the households are doing business with, as well as measures of trust in the households’ main bank and the banking sector. We find that households who distrust the banking sector are less likely to hold a bank account. Moreover, account holders are more likely to switch to a new main bank if they do not trust their current one. The estimated relationships persist over and above a range of socioeconomic variables. JEL Classification: G21, G28, D14
    Keywords: banking, household finance, trust
    Date: 2018–10
  6. By: Carin van der Cruijsen, Maurice Doll and Frank van Hoenselaar
    Abstract: The use of online peer-to-peer marketplaces is growing rapidly. It is important to understand what drives consumers' usage of these markets. Based on detailed survey data collected among a representative panel of Dutch consumers, we report a significant positive relationship between trust in other people and current and expected future usage of peer platform markets (PPMs). People who in general trust others are 10 percentage points more likely to use PPMs than people who distrust others. Less uncertainty about the reliability of other persons, the quality of goods and services offered and payments can stimulate usage of PPMs.
    Keywords: peer platform markets; generalised trust; consumer behaviour; consumption; consumer survey
    JEL: D12 D14 O33
    Date: 2018–10
  7. By: Simone Moriconi (IÉSEG School of Management); Giowanni Peri (University of California, Davis); Dario Pozzoli (Copenhagen Business School);
    Abstract: The offshoring of production by multinational firms has expanded dramatically in recent decades, increasing these firms’ potential for economic growth and technological transfers across countries. What determines the location of offshore production? How do countries’ policies and characteristics affect the firm’s decision about where to offshore? Do firms choose specific countries because of their policies or because they know them better? In this paper, we use a very rich dataset on Danish firms to analyze how decisions to offshore production depend on the institutional characteristics of the country and firm-specific bilateral connections. We find that institutions that enhance investor protection and reduce corruption increase the probability that firms offshore there, while those that increase regulation in the labor market decrease such probability. We also show that a firm’s probability of offshoring increases with the share of its employees who are immigrants from that country of origin.
    Keywords: Offshoring, Product Market, Labor Regulations, Networks, Fixed start-up Costs
    Date: 2018–10
  8. By: Armenak Antinyan; Vardan Baghdasaryan; Aleksandr Grigoryan
    Abstract: This paper aims to study the impact of positional concerns on an understudied set of policy-relevant variables: social preferences, public good provision, and social capital. We utilize data from the “Caucasus Barometer” survey administered in three post-Soviet transition economies: Armenia, Azerbaijan, and Georgia. Controlling for absolute income and other individual and household characteristics, we find that the relative deprivation of a household has negative impacts on its members’ social preferences, public good provision, and social capital. In contrast, relative advantage has only positive influences on the variables of interest (if any).
    Keywords: positional concern; social capital; social preferences; public good; reference group;
    JEL: D60 D63 P30 Z13
    Date: 2018–09
  9. By: Bijwaard, Govert (NIDI - Netherlands Interdisciplinary Demographic Institute); Schluter, Christian (University of Southampton)
    Abstract: Consider the duration of stay of migrants in a host country. We propose a statistical model of locally interdependent return hazards in order to examine whet- her interactions at the level of the neighbourhood are present and lead to social multipliers. To estimate this model we develop and study two complementary estimation strategies, demonstrate their good performance while standard non-spatial estimators are shown to be heavily biased. Using a unique large administrative panel dataset for the population of recent labour immigrants to the Netherlands, we quantify the local social multipliers in several factual and counterfactual experiments, and demonstrate that these are substantial.
    Keywords: interdependent hazards, local interaction, social multipliers, return migration
    JEL: C41 C10 C31 J61
    Date: 2018–08

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