The Role of Social Ties in Factor Allocation

We investigate whether social structure helps or hinders factor allocation using unusually rich data from the Gambia. Evidence indicates that land available for cultivation is allocated unequally across households; and that factor transfers are more common between neighbors, co-ethnics, and kinship-...

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Main Authors: Beck, Ulrik, Bjerge, Benedikte, Fafchamps, Marcel
Format: Journal Article
Published: Published by Oxford University Press on behalf of the World Bank 2021
Subjects:
Online Access:http://hdl.handle.net/10986/35416
id okr-10986-35416
recordtype oai_dc
spelling okr-10986-354162021-04-23T14:02:21Z The Role of Social Ties in Factor Allocation Beck, Ulrik Bjerge, Benedikte Fafchamps, Marcel SOCIAL NETWORKS KINSHIP ALLOCATIVE EFFICIENCY LAND MARKET FACTOR MARKETS SOCIAL DISTRIBUTION LAND TRANSACTION INEQUALITY We investigate whether social structure helps or hinders factor allocation using unusually rich data from the Gambia. Evidence indicates that land available for cultivation is allocated unequally across households; and that factor transfers are more common between neighbors, co-ethnics, and kinship-related households. Does this lead to the conclusion that land inequality is due to flows of land between households being impeded by social divisions? To answer this question, a novel methodology that approaches exhaustive data on dyadic flows from an aggregate point of view is introduced. Land transfers lead to a more equal distribution of land and to more comparable factor ratios across households in general. But equalizing transfers of land are not more likely within ethnic or kinship groups. In conclusion, ethnic and kinship divisions do not hinder land and labor transfers in a way that contributes to aggregate factor inequality. Labor transfers do not equilibrate factor ratios across households. But it cannot be ruled out that they serve a beneficial role, for example, to deal with unanticipated health shocks. 2021-04-09T16:37:17Z 2021-04-09T16:37:17Z 2019-10 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/35416 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Africa Western and Central (AFW) Gambia, The
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic SOCIAL NETWORKS
KINSHIP
ALLOCATIVE EFFICIENCY
LAND MARKET
FACTOR MARKETS
SOCIAL DISTRIBUTION
LAND TRANSACTION
INEQUALITY
spellingShingle SOCIAL NETWORKS
KINSHIP
ALLOCATIVE EFFICIENCY
LAND MARKET
FACTOR MARKETS
SOCIAL DISTRIBUTION
LAND TRANSACTION
INEQUALITY
Beck, Ulrik
Bjerge, Benedikte
Fafchamps, Marcel
The Role of Social Ties in Factor Allocation
geographic_facet Africa
Africa Western and Central (AFW)
Gambia, The
description We investigate whether social structure helps or hinders factor allocation using unusually rich data from the Gambia. Evidence indicates that land available for cultivation is allocated unequally across households; and that factor transfers are more common between neighbors, co-ethnics, and kinship-related households. Does this lead to the conclusion that land inequality is due to flows of land between households being impeded by social divisions? To answer this question, a novel methodology that approaches exhaustive data on dyadic flows from an aggregate point of view is introduced. Land transfers lead to a more equal distribution of land and to more comparable factor ratios across households in general. But equalizing transfers of land are not more likely within ethnic or kinship groups. In conclusion, ethnic and kinship divisions do not hinder land and labor transfers in a way that contributes to aggregate factor inequality. Labor transfers do not equilibrate factor ratios across households. But it cannot be ruled out that they serve a beneficial role, for example, to deal with unanticipated health shocks.
format Journal Article
author Beck, Ulrik
Bjerge, Benedikte
Fafchamps, Marcel
author_facet Beck, Ulrik
Bjerge, Benedikte
Fafchamps, Marcel
author_sort Beck, Ulrik
title The Role of Social Ties in Factor Allocation
title_short The Role of Social Ties in Factor Allocation
title_full The Role of Social Ties in Factor Allocation
title_fullStr The Role of Social Ties in Factor Allocation
title_full_unstemmed The Role of Social Ties in Factor Allocation
title_sort role of social ties in factor allocation
publisher Published by Oxford University Press on behalf of the World Bank
publishDate 2021
url http://hdl.handle.net/10986/35416
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