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on Social Norms and Social Capital |
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Issue of 2024‒05‒06
five papers chosen by Fabio Sabatini, Università degli Studi di Roma “La Sapienza” |
| By: | Perroni, Carlo (University of Warwick); Scharf, Kimberley (University of Nottingham); Smith, Sarah (University of Bristol); Talavera, Oleksandr (University of Birmingham); Vi, Linh (Aston University) |
| Abstract: | Combining longitudinal postcode-level data on charitable donations made through a UK giving portal with publicly available data on local crime and neighborhood characteristics, we study the relationship between local crime and local residents’ charitable giving and we investigate the possible mechanisms underlying this relationship. An increase in local crime corresponds to a sizeable increase in the overall size of unscheduled charitable donations. This effect is mainly driven by the responses of female and gender unclassified donors. Donation responses also reflect postcode variation in socio-economic characteristics, levels of mental health, and political leanings, but mainly so for female and gender-unidentified donors. |
| Keywords: | Charitable Donations ; Prosocial Behavior ; Crime JEL Codes: H41 ; D64 ; D91 ; J15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1493&r=soc |
| By: | Gächter, Simon (University of Nottingham); Kaiser, Esther (Zurich University of Applied Sciences (ZHAW)); Königstein, Manfred (University of Erfurt) |
| Abstract: | Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many contractual relationships. In a series of eight laboratory gift-exchange experiments, we show that incentive contracts can lead to crowding out of voluntary cooperation even after incentives have been abolished. This crowding out occurs also in repeated relationships, which otherwise strongly increase effort compared to one-shot interactions. Using a unified econometric framework, we unpack these results as a function of positive and negative reciprocity, as well as the principals' wage offer and the incentive-compatibility of the contract. Crowding out is mostly due to reduced wages and not a change in reciprocal wage-effort relationships. Our systematic analysis also replicates established results on gift exchange, incentives, and crowding out of voluntary cooperation while exposed to incentives. Overall, our findings show that the behavioral consequences of explicit incentives strongly depend on the features of the situation in which they are embedded. |
| Keywords: | principal-agent games, gift-exchange experiments, incomplete contracts, explicit incentives, implicit incentives, repeated games, crowding out |
| JEL: | C70 C90 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16872&r=soc |
| By: | Ubeda, Fernando; Mendez, Alvaro; Forcadell, Francisco Javier |
| Abstract: | Trust in banking plays a significant role in promoting financial inclusion. Multinational banks (MNBs) have the potential to enhance trust by adopting sustainable banking practices. We investigate the impact of MNBs' adoption of ESG (Environmental, Social and Governance) practices on trust in banking in 38 developing countries. Using an instrumental variable approach and control function estimation, our findings indicate that sustainable practices by commercial MNBs are positively and significantly associated with increased trust in banking. The results remain consistent across different samples, lending robustness to our findings. By demonstrating the importance of sustainable banking in fostering trust, this study contributes to the limited literature on trust in banking in the global South. |
| JEL: | F3 G3 |
| Date: | 2024–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122554&r=soc |
| By: | Balakina, Olga; Bäckman, Claes; Parakhoniak, Anastasiia |
| Abstract: | What are the aggregate and distributional consequences of the relationship between an individual's social network and financial decisions? Motivated by several well-documented facts about the influence of social connections on financial decisions, we build and calibrate a model of stock market participation with a social network that emphasizes the interplay between connectivity and network structure. Since connections to informed agents help spread information, there is a pivotal role for factors that determine sorting among agents. An increase in the average number of connections raises the average participation rate, mostly due to richer agents. A higher degree of sorting benefits richer agents by creating clusters where information spreads more efficiently. We show empirical evidence consistent with the importance of connectivity and sorting. We discuss several new avenues for future research into the aggregate impact of peer effects in finance. |
| Keywords: | Social networks, Peer effects, Stock Market Participation, Connectivity, Homophily |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:289595&r=soc |
| By: | Enzo Brox (SEW, University of St.Gallen); Riccardo Di Francesco (DEF, University of Rome "Tor Vergata") |
| Abstract: | The fear of social stigma and discrimination leads many individuals worldwide to hesitate in openly disclosing their sexual orientation. Due to the large costs of concealing identity, it is crucial to understand the extent of anti-LGB sentiments and reactions to coming out. However, disclosing one’s sexual orientation is a personal choice, complicating data access and introducing endogeneity issues. This paper tackles these challenges by using an innovative data source from a popular online video game together with a natural experiment. We exploit exogenous variation in the identity of a playable character to identify the effects of disclosure on players’ revealed preferences for that character. Leveraging detailed daily data, we monitor players’ preferences for the character across diverse regions globally and employ synthetic control methods to isolate the effect of the disclosure on players’ preferences. Our findings reveal a substantial and persistent negative impact of coming out. To strengthen the plausibility of social stigma as the primary explanation for the estimated effects, we systematically address and eliminate several alternative game-related channels. |
| Keywords: | LGB economics, social stigma, concealable stigma |
| JEL: | J15 J71 K38 |
| Date: | 2024–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:572&r=soc |