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来源类型Working Paper
规范类型报告
DOI10.3386/w6832
来源IDWorking Paper 6832
Network Effects and Welfare Cultures
Marianne Bertrand; Erzo F.P. Luttmer; Sendhil Mullainathan
发表日期1998-12-01
出版年1998
语种英语
摘要This paper empirically examines the role of social networks in welfare participation. Social theorists from across the political spectrum have argued that network effects have given rise to a culture of poverty. Empirical work, however, has found it difficult to distinguish the effect of networks from unobservable characteristics of individuals and areas. We use data on language spoken to better infer an individual's network within an area. Individuals who are surrounded by others speaking their language have a larger pool of available contacts. Moreover, the network influence of this pool will depend on their welfare knowledge. We, therefore, focus on the differential effect of increased contact availability: does being surrounded by others who speak the same language increase welfare use more for individuals from high welfare using language groups? The results strongly confirm the importance of networks in welfare participation. We deal with omitted variable bias in several ways. First, our methodology allows us to include local area and language group fixed effects and to control for the direct effect of contact availability; these controls eliminate many of the problems in previous studies. Second, we instrument for contact availability in the neighborhood with the number of one's language group in the entire metropolitan area. Finally, we investigate the effect of removing education controls. Both instrumentation and removal of education controls have little impact on the estimates.
主题Microeconomics ; Economics of Information ; Public Economics ; National Fiscal Issues
URLhttps://www.nber.org/papers/w6832
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/564343
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GB/T 7714
Marianne Bertrand,Erzo F.P. Luttmer,Sendhil Mullainathan. Network Effects and Welfare Cultures. 1998.
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