A Dark Side of Social Capital? Kinship, Consumption, and Savings

Salvatore Di Falco (1) , Erwin Bulte (2)

1 LSE - London School of Economics and Political Science
2 Development Economics

We explore if traditional sharing norms in kinship networks affect consumption and accumulation decisions of poor black households in Kwazulu-Natal, South Africa. Using a proxy for the number of family dependents, our results are consistent with the interpretation that households try to evade their 'sharing obligations' by (i) accumulating durables that are non-sharable at the expense of durables that may be shared, and (ii) reducing savings in liquid assets. By attenuating accumulation incentives, kinship sharing may come at the expense of income growth -- if so, a culturally-induced poverty trap can possibly eventuate. We demonstrate tentative evidence that more extensive kinship networks are associated with lower incomes.

Mots clés: Social Sciences & Humanities

Domaines: Sciences de l'Homme et Société

Salvatore Di Falco, Erwin Bulte. A Dark Side of Social Capital? Kinship, Consumption, and Savings. The Journal of Development Studies, 2011, pp.1. ⟨10.1080/00220388.2010.514328⟩. ⟨hal-00722232⟩