NEP: New Economics Papers - Social Norms and Social Capital - Digest, Vol 83, Issue 3

In this issue we feature 5 current papers on the theme of social capital, chosen by Fabio Sabatini (Università degli Studi di Roma “La Sapienza”):

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  1. Wheat Agriculture and Family Ties - James B. Ang; Per G. Fredriksson
  2. Unethical Behavior and Group Identity in Contests - Julien Benistant; Marie Claire Villeval
  3. Multidimensional Group Identity and Redistributive Allocation: An Experimental Study - Fuhai HONG; Yohanes E. RIYANTO; Ruike ZHANG
  4. A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis - Amiraslani, Hami; Lins, Karl; Servaes, Henri; Tamayo, Ane
  5. Racial Segregation and Southern Lynching - Lisa D. Cook; Trevon D. Logan; John M. Parman
  6. The Political Impact of the Internet on US Presidential Elections Valentino Larcinese; Luke Miner
  7. Eliciting Guilt Sensitivity to Predict Real-World Behavior Shoji, Masahiro
  8. Educational Attainment and Neighbourhood Outcomes: Differences between Highly-Educated Natives and Non-Western Ethnic Minorities in the Netherlands  de Vuijst, Elise; van Ham, Maarten
  9. How Segregated is Urban Consumption? Donald R. Davis; Jonathan I. Dingel; Joan Monras; Eduardo Morales

1. Wheat Agriculture and Family Ties

   James B. Ang (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

   Per G. Fredriksson (Department of Economics, University of Louisville, Louisville, KY 40292, USA.)

 Several recent contributions to the literature have suggested that the  strength of family ties is related to various economic and social outcomes.

 For example, Alesina and Giuliano (2014) highlight that the strength of  family ties is strongly correlated with lower GDP and lower quality of  institutions. However, the forces shaping family ties remain relatively  unexplored in the literature. This paper proposes and tests the hypothesis  that the agricultural legacy of a country matters for shaping the strength of  its family ties.

Using data from the World Values Survey and the European  Values Study, the results show that societies with a legacy in cultivating  wheat tend to have weaker family ties. Analysis at the sub-national level (US data) and the country level corroborate these ?ndings. The estimations allow  for alternative hypotheses which propose that pathogen stress and climatic  variation can potentially also give rise to the formation of family ties. The  results suggest that the suitability of land for wheat production is the most  influential factor in explaining the variation in the strength of family ties  across societies and countries.

   Keywords: Family ties; agriculture; long-run comparative development

   JEL: O1 Q1 Z1

URL: http://d.repec.org/n?u=RePEc:nan:wpaper:1705&r=soc

 

2. Unethical Behavior and Group Identity in Contests

   Julien Benistant (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université

    Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

   Marie Claire Villeval (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 -

    Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS -

    Centre National de la Recherche Scientifique)  Using a real-effort experiment, we studied how minimal group identity affects  unethical behavior in a contest game. We varied (i) whether individuals had  to report their own output or the output of their competitor, (ii) whether  group identity was induced or not, and (iii) whether pairs of competitors  shared the same group identity or not. We show that individuals misreported  in the same proportion and to the same extent by inflating their output or by  decreasing their opponent's output. Misreporting was affected neither by the  competitor's group identity nor by the individual's beliefs about  misreporting. This suggests that in such competitive settings, unethical  behavior is mainly driven by an unconditional desire to win.

Abstract: Using  a real-effort experiment, we studied how minimal group identity affects  unethical behavior in a contest game. We varied (i) whether individuals had  to report their own output or the output of their competitor, (ii) whether  group identity was induced or not, and (iii) whether pairs of competitors  shared the same group identity or not. We show that individuals misreported  in the same proportion and to the same extent by inflating their output or by  decreasing their opponent's output. Misreporting was affected neither by the  competitor's group identity nor by the individual's beliefs about  misreporting. This suggests that in such competitive settings, unethical  behavior is mainly driven by an unconditional desire to win.

   Keywords: lying, group identity, competition, experiment,Unethical behavior

URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01592007&r=soc

 

3. Multidimensional Group Identity and Redistributive Allocation: An Experimental Study

   Fuhai HONG (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

   Yohanes E. RIYANTO (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

   Ruike ZHANG (Division of Economics, Nanyang Technological University, 14  Nanyang Drive, Singapore 637332.)

 Social identity is embedded in social structures, generated by various social  processes, and has multiple dimensions. We report ?ndings from a laboratory  experiment eliciting two-dimensional social identities: a horizontal identity  determined either randomly or by preferences and a vertical identity de?ned  by income status and determined either by luck or performance. We also vary  income gaps between vertical identity groups. Participants make  redistributive allocation decisions between two others di¤ering in identity  attributes. We ?nd robust evidence of in-group favoritism and that both the  identity distance between the allocator and the in-group recipient and income  gaps in?uence the degree of in-group favoritism.

   Keywords: Social Identities, Horizontal and Vertical Identity Attributes, In-group Favoritism, Income Inequality

   JEL: C91 D03

URL: http://d.repec.org/n?u=RePEc:nan:wpaper:1701&r=soc

 

4. A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis

   Amiraslani, Hami

   Lins, Karl

   Servaes, Henri

   Tamayo, Ane

 We investigate whether a firm's social capital, and the trust that it  engenders, are viewed favorably by bondholders. Using the financial crisis as  an exogenous shock to trust, and firms' corporate social responsibility (CSR)  activities as a proxy for social capital, we show that high-CSR firms  benefited from lower bond spreads in the secondary market during the  financial crisis compared to low-CSR firms.

These findings are more  pronounced for firms that, when in distress, have a greater opportunity to  engage in asset substitution or divert cash to shareholders. High-CSR firms  were also able to raise more debt capital on the primary market during this  period, and those high-CSR firms that raised more debt were able to do so at  lower at-issue bond spreads, better initial credit ratings, and for longer  maturities. Our results suggest that debt investors believe that high-CSR  firms are less likely to engage in asset substitution and diversion that  would be detrimental to stakeholders, including debtholders. These findings  also indicate that the benefits of CSR that accrued to shareholders during  the financial crisis carry across to another important asset class, debt  capital.

   Keywords: corporate bonds; cost of debt; CSR; financial crisis; social capital; Trust

   JEL: G12 G21 G32 M14

URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:12321&r=soc

 

5. Racial Segregation and Southern Lynching

   Lisa D. Cook

   Trevon D. Logan

   John M. Parman

 The literature on ethnic fractionalization and conflict has not been extended  to the American past. In particular, the empirical relationship between  racial residential segregation and lynching is unknown. The existing  economic, social, and political theories of lynching contain hypotheses about  the relationship between racial segregation and racial violence, consistent  with theories of social conflict. Since Southern lynching occurred in rural  and urban areas, traditional urban measures of racial segregation cannot be  used to estimate the relationship. We use a newly developed household-level  measure of residential segregation (Logan and Parman 2017), which can  distinguish between racial homogeneity of a location and the tendency to  racially segregate, to estimate the correlation between racial segregation  and lynching in the southern counties of the United States.

We find that  conditional on racial composition, racially segregated counties were much  more likely to experience lynchings. Consistent with the hypothesis that  segregation is related to interracial violence, we find that segregation is  highly correlated with African American lynching, but uncorrelated with white  lynching. These results extend the analysis of racial/ethnic conflict into  the past and show that the effects of social interactions and interracial  proximity in rural areas are as important as those in urban areas.

   JEL: I1 J1 N3

URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23813&r=soc

 

6. The Political Impact of the Internet on US Presidential Elections

   Valentino Larcinese

   Luke Miner

 What are the political consequences of the diffusion of broadband internet?

 We address this question by studying the 2008 US presidential election, the  first political campaign where the internet played a key role. Drawing on  data from the FEC and the FCC, we provide robust evidence that internet  penetration in US counties is associated with an increase in turnout, an  increase in campaign contributions to the Democrats and an increase in the  share of Democratic vote. We then propose an IV strategy to deal with  potential endogeneity concerns: we exploit geographic discontinuities along  state borders with different right-of-way laws, which constitute the main  determinant of the cost of building new infrastructure. IV estimates confirm  a positive impact of broadband diffusion on turnout, while the pro-Democratic  Party effect of the internet appears to be less robust.

   Keywords: internet diffusion, political economy of the media, United States elections, turnout, campaign contributions

   JEL: D72 L86

URL: http://d.repec.org/n?u=RePEc:cep:stieop:63&r=soc

 

7. Eliciting Guilt Sensitivity to Predict Real-World Behavior

   Shoji, Masahiro

 This study tests guilt aversion by experimentally eliciting guilt sensitivity  of villagers in Bangladesh and evaluating its impact on real-world behavior.

 In a trust game with hidden action, villagers in this study are asked about  their reciprocal behavior toward seven potential opponents with different  levels of trusting belief. Guilt sensitivity is elicited from the threshold  belief to switch from selfish to reciprocal behavior. It appears that males  exhibit higher guilt sensitivity. I also find robust supporting evidence for  guilt aversion but not for pure altruism or trustworthiness; guilt-averse  villagers can borrow from and repay to community members after a disaster.

 Individuals also suffer less from property crime in villages with a higher  guilt-sensitivity neighborhood. However, guilt sensitivity is uncorrelated  with contribution to community events. A potential reason for the  insignificant effect is discussed.

   Keywords: Guilt aversion; peer effects; antisocial behavior; experiment; Bangladesh

   JEL: C91 C93

URL: http://d.repec.org/n?u=RePEc:pra:mprapa:81451&r=soc

 

8. Educational Attainment and Neighbourhood Outcomes: Differences between Highly-Educated Natives and Non-Western Ethnic Minorities in the Netherlands

   de Vuijst, Elise (Delft University of Technology)

   van Ham, Maarten (Delft University of Technology) 

In the Netherlands, obtaining a higher education increases the chance to move  to a better neighbourhood for native Dutch adults who grew up in a deprived  parental neighbourhood. For non-Western minorities, education does not have  this positive effect on socio-spatial mobility. In this study we investigate  potential explanations for these ethnic differences in the relationship  between educational attainment and neighbourhood outcomes over time. We use  longitudinal register data from the Netherlands to study a complete cohort of  parental home leavers who attained a higher education by the end of the  measurement period (1999 to 2012).

We supplemented this data with information  gathered in the WoON-survey. We examined differences in income trajectories  for highly-educated native Dutch and non-Western ethnic minorities;  investigated the strength of intergenerational transmission of income for  both groups; and assessed individual neighbourhood experiences and  contentment. We find that the highly-educated native Dutch in our  subpopulation have a substantially higher average income over time, and a  weaker association to the income of their parents compared to the non-Western  ethnic minorities. Additionally, for ethnic minorities, our results show that  the level of contentment with their neighbourhood is highest in deprived  neighbourhoods compared to more affluent residential environments, and they  more often reside in close proximity to their parents compared to the native  Dutch, both suggesting an element of choice in neighbourhood selection.

   Keywords: neighbourhood histories, intergenerational transmission, income, education, ethnicity, longitudinal data

   JEL: I30 J60 P46 R23

URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp10999&r=soc

 

9. How Segregated is Urban Consumption?

   Donald R. Davis

   Jonathan I. Dingel

   Joan Monras

   Eduardo Morales

 We provide measures of ethnic and racial segregation in urban consumption.

 Using Yelp reviews, we estimate how spatial and social frictions influence  restaurant visits within New York City. Transit time plays a first-order role  in consumption choices, so consumption segregation partly reflects  residential segregation. Social frictions also have a large impact on  restaurant choices: individuals are less likely to visit venues in  neighborhoods demographically different from their own. While spatial and  social frictions jointly produce significant levels of consumption  segregation, we find that restaurant consumption in New York City is only  about half as segregated as residences. Consumption segregation owes more to  social than spatial frictions.

   JEL: D12 J15 L83 R2

URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23822&r=soc


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14th PASCAL International Observatory Conference - South Africa

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