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on Social Norms and Social Capital |
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Issue of 2026–05–11
twelve papers chosen by Fabio Sabatini, Università degli Studi di Roma “La Sapienza” |
| By: | Chabé-Ferret, Bastien (Middlesex University, London); Iftikhar, Zainab (University of Bonn - CEPR); Park, JungJae (Yonsei University) |
| Abstract: | This paper quantifies the contributions of social norms and economic incentives to the 350-hour annual gap in maternal labor supply between East and West Germany. Using a collective model of family formation and labor supply estimated on GSOEP data from 2000–2017, we find that the working-mother stigma accounts for 73 percent of the gap. Economic factors partially offset the norm: higher Western wages raise the opportunity cost of staying home, so equalizing wages in West to the levels in East would nearly double the gap. We show that standard policy reforms may actually widen the regional disparity, and that their effectiveness is conditional on the norm being present: once removed, the same policies have negligible effects. |
| Keywords: | social norms, economic incentives, marriage, cohabitation, working mothers |
| JEL: | J01 J08 J12 J13 J22 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18600 |
| By: | Giuliano, Paola (University of California, Los Angeles) |
| Abstract: | This chapter reviews the growing literature on the origin, persistence and evolution of cultural norms. I begin by examining the deep historical forces that shape the formation of cultural norms, with particular attention to the role of geography, pre-industrial societal characteristics, political institutions, and historical shocks. I then analyze the mechanisms through which cultural norms persist and evolve, emphasizing the roles of vertical, horizontal, and oblique transmission. Next, I examine the complex interaction between culture and institutions, and discuss the conditions under which cultural norms change. Several conclusions emerge. Cultural norms tend to persist over remarkably long periods, though the speed of change varies significantly across traits. Understanding the origins and persistence of cultural norms has important implications for policy: policies that ignore local cultural context risk failure or unintended consequences, while well-designed interventions can successfully shift norms. Finally, I discuss the growing evidence on cultural mismatches - situations where norms that were adaptive in historical environments become maladaptive in new contexts - and outline directions for future research. |
| Keywords: | cultural norms, cultural evolution, historical persistence |
| JEL: | Z1 P0 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18583 |
| By: | Gianluca Grimalda (University of Passau); Fabrice Murtin (OECD Statistics and Data Directorate); David Pipke (Kiel Institute for the World Economy); Louis Putterman (Brown University); Matthias Sutter (Max Planck Institute for Behavioral Economics, Bonn) |
| Abstract: | Pathogen-stress and terror-management theories predict that lethal epidemics heighten parochial cooperation. We test this prediction experimentally in two nationally representative U.S. samples surveyed before and at the onset of the COVID-19 pandemic. We compare trust and expected trustworthiness across the two waves in monetarily incentivized trust games involving non-Hispanic Whites, African Americans, and Hispanics. We find significant ingroup favoritism in both waves. However, the aggregate ingroup premium fell by about one-half between waves. This decline was concentrated among left-leaning and White respondents. Conversely, both African Americans and Hispanics displayed significant ingroup bias in both waves. While non-Hispanic Whites tended to reduce their ingroup bias in expected trustworthiness, the opposite was found for African Americans. Respondents more exposed to COVID-19 displayed higher inter-group trust, altruism and expected trustworthiness than others. These results contradict the hypothesis that lethal epidemics intensify parochialism, also suggesting that the response may be diversified across groups. |
| Keywords: | COVID-19, Pandemic, Inter-group Relationships, Parochialism, Ingroup, Outgroup, Discrimination, Prosociality |
| JEL: | D01 D63 D91 I14 J15 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:mpg:wpaper:2026_04 |
| By: | Benjamin Sheehan (IUJ Research Institute, International University of Japan); Pramodhya Dissanayake; Janani Kumarathunga |
| Abstract: | Prosocial behavior is essential for a functioning society. Despite increasing urbanization, the impact of population density on prosocial behavior remains unclear. Prior research offers conflicting predictions. Some research suggests that increased density might increase prosocial behavior via increased opportunities to help others. Contrasting accounts suggest that increased density decreases prosocial behavior via anonymity and competition for resources. Across two correlational designs (N = 400), the present research suggests a small, positive relationship between density and self-reported prosocial behavior. However, a third study (N = 482) which manipulates perceived density, alongside other relevant constructs, suggests that strong vs. weak social norms and high vs. low interdependence are more proximal influences of prosocial behavior, than population density itself. |
| Keywords: | Prosocial behavior, Population density, Social norms, Interdependence, Visibility |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2026_06 |
| By: | Gomez, Rafael (University of Toronto); Bryson, Alex (University College London); Willman, Paul (London School of Economics) |
| Abstract: | We review the literature on trust and cooperation with application to labour-management relations. We begin with the neo-classical economic view of self-regarding individuals operating with perfect information and show that once one abandons the dyadic case with perfect information, cooperation deteriorates as group size increases and the probability of behavioural or perceptual error rises. We show that self-regarding models have no way of explaining cooperative outcomes between management and labour under typical conditions and lead to less optimal forms of non-cooperative strategic bargaining. By way of contrast, models of cooperation with other-regarding preferences and trust – drawn from behavioural economics, social psychological, economic sociology and industrial relations literatures – show that a high level of cooperation can be attained even in large groups, with modest informational requirements, and that conditions allowing the evolution of trust and other-regarding social preferences are plausible and find empirical support. We also show that actors’ perceptions of the employment relationship underpin assumptions of human nature, which is what inevitably determines strategies used in labour-management relations. |
| Keywords: | trust, cooperation, labor-management relations |
| JEL: | J5 J53 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18577 |
| By: | Aldashev, Alisher (Kazakh British Technical University); Danzer, Alexander (Catholic University of Eichstätt-Ingolstadt) |
| Abstract: | Ceremonies are central to social life, yet the pressure to conform to community spending norms traps households in a collectively suboptimal equilibrium, imposing severe financial burdens. Using nationally and regionally representative longitudinal data from Tajikistan and Kyrgyzstan, we document that ceremonial expenditures are sizeable, display striking income inelasticities, and are strongly shaped by local spending norms, making celebrations disproportionately burdensome for poorer households. We evaluate two distinct regulatory approaches through separate natural experiments: a top-down legal ban on lavish wedding celebrations in Tajikistan and a bottom-up, community-driven norm agreement in Kyrgyzstan- interventions with close analogues in Afghanistan, China, India, and Pakistan. Both yield reductions in ceremonial spending, with household savings larger under the bottom-up approach, but they operate through fundamentally different compliance mechanisms. The top-down reform hinges on external monitoring and credible sanctions, while the bottom-up intervention relies on social trust and norm internalization. These findings identify external enforcement and social trust as the key compliance mechanisms. |
| Keywords: | ceremonial spending, conspicuous consumption, compliance, monitoring, trust, anti-poverty policy |
| JEL: | D12 D04 H31 O17 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18585 |
| By: | Nainggolan, Lukas Bonar; Lansink, Alfons Oude; Rommel, Jens; Höhler, Julia |
| Abstract: | Agricultural and forestry production are inherently connected to the provision of impure public goods, yet public good provision generally remains below socially optimal levels. One promising approach to increase provision are social norms and non-binding collective agreements facilitated through cooperatives, although existing evidence on their effectiveness is mixed. We conducted a threshold public goods experiment with 141 farmers and foresters from Greece and Italy to examine the effectiveness of collective agreements and the relationship between social norms and cooperation. Our results show that non-binding collective agreements significantly increase individual contributions. We contribute to the literature by showing that not only average social norms, but also their distribution, are correlated with individual contributions, with greater heterogeneity within groups associated with lower contributions. Overall, focal points are shaped by expectations of peers’ contributions. Two key implications follow: cooperatives can effectively facilitate collective action, and managing heterogeneity among farmers and foresters is essential for sustaining cooperation. |
| Keywords: | Public Economics |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes026:397870 |
| By: | Leonardo Bursztyn; Angela L. Duckworth; Rafael Jiménez-Durán; Aaron Leonard; Filip Milojević; Christopher Roth; Cass R. Sunstein |
| Abstract: | In December 2025, Australia became the first country to ban youth under 16 years old from holding accounts on major social media platforms, a policy now under consideration in more than a dozen countries and in numerous states. Because social media use is inherently social, the effectiveness of a ban that is easy to circumvent may depend on whether compliance reaches a tipping point: a share of compliant peers high enough to make it optimal for individuals to comply themselves. We surveyed 835 Australian teenagers four months after the ban took effect and find that only about one in four 14–15-year-olds comply. The social environment around use has barely moved: most banned teens believe that their peers are still using banned platforms and cite social reasons for continuing use. Sustaining high compliance requires two ingredients: the share of compliers must be high enough and those who comply must find it preferable to continue complying. The current ban achieves neither. Teenagers report that they require roughly two-thirds of peers to stop using social media to stop themselves, far above the share currently complying. They also perceive compliers as less popular than non-compliers, so the more influential teens disproportionately stay on the platforms. Together, these patterns suggest that compliance is more likely to diminish than to rise. Sustaining higher compliance will likely require pairing the ban with instruments that act on social norms and individual incentives directly. |
| JEL: | D83 D91 L00 L40 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35162 |
| By: | Muhammad Farooq Ahmad (SKEMA Business School); Saqib Aziz (Rennes SB - Rennes School of Business); Rwan El-Khatib (Zayed University); Duc Khuong Nguyen (VSE - Prague University of Economics and Business, Department of Land Economy, University of Cambridge) |
| Abstract: | We empirically examine how trust asymmetry between countries can impact the cross-border merger outcome. Differing trust perceptions between acquirer and target countries can increase the complexities of deal negotiations and integration, constraining the successful deal completion and outcome. We find, in a comprehensive global sample of 56 countries spanning 37 years, that higher trust asymmetries between the acquirer and target countries significantly increases the cross-border merger withdrawal intensity and reduces the expected synergy gains. Moreover, the adverse effects of trust asymmetry are significantly attenuated by the quality of institutions in both countries. Our results hold after employing various empirical techniques to address endogeneity, omitted variable bias, and reverse causality. Overall, this study highlights the importance of trust asymmetry in shaping global economic outcomes. |
| Keywords: | Cross-border mergers, Trust asymmetry, Culture, Withdrawn mergers, Global |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05601230 |
| By: | Pauline Grosjean; Saumitra Jha; Michael Vlassopoulos; Yves Zenou |
| Abstract: | We show how exposure to partisan peers, under conditions requiring high stakes cooperation, can trigger the breakthrough of novel political beliefs. We exploit the large-scale, exogenous assignment of soldiers from each of 34, 947 French municipalities into line infantry regiments during World War I. We show that soldiers from poor, rural municipalities---where the novel redistributive message of the left had previously failed to penetrate---voted for the left by nearly 45% more after the war when exposed to left-wing partisans within their regiment. We provide evidence that these differences reflect persuasive information provision by both peers and officers in the trenches that proved particularly effective among those most likely to benefit from the redistributive policies of the left. In contrast, soldiers from neighbouring municipalities that served with right-wing partisans are inoculated against the left, becoming moderate centrists instead. |
| Keywords: | Political Persuasion, Transmission, War, Voting Behavior, Conflict, Peer Effects, France, World War I |
| JEL: | D74 N44 L14 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2539 |
| By: | Delia Furtado; Samantha Trajkovski; Nikolaos Theodoropoulos |
| Abstract: | When maternity leave policies lower the cost of taking leave, leave durations tend to increase. If enough people extend their leaves, social norms can shift, further reinforcing longer leave-taking. This paper examines whether foreign-born mothers in the US-who are not directly subject to home country policies-respond to policy changes abroad via norms. Exploiting variation in US birth timing and policy reforms abroad, we find that increases in paid leave in immigrants' home countries lead to longer US maternity leaves, even after accounting for country-of-origin fixed effects. Heterogeneity analyses and placebo tests also point to policy-induced shifting leave-taking norms. |
| Keywords: | Maternity Leave, Gender Norms, Immigrants, Female Labor Supply |
| JEL: | J13 J15 J18 J22 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2560 |
| By: | Stanislav Avdeev (University of Amsterdam) |
| Abstract: | This paper provides the first evidence on the impact of exposure to international students on the long-term outcomes of native students. I combine unique survey and administrative data from the Netherlands covering one million students across three decades and employ an across-cohort design. I find that exposure to international students leads natives to (i) form social ties with non-natives, (ii) hold more positive attitudes towards migration and learning about other cultures, and (iii) seek opportunities abroad. Notably, I find precisely estimated zero effects on employment, income, entrepreneurship, and the share of international co-workers up to 25 years after university entry. |
| Keywords: | Contact hypothesis, domestic students, foreign students, higher education, labor market, mobility, networks, peer effects, emigration |
| JEL: | F22 I23 J24 |
| Date: | 2025–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250067 |