|Title||Does social capital affect investment in human capital? Family ties and schooling decisions|
|Author(s)||Falco, Salvatore Di; Bulte, Erwin|
|Source||Applied Economics 47 (2015)2. - ISSN 0003-6846 - p. 195 - 205.|
Development Economics Group
|Publication type||Refereed Article in a scientific journal|
|Keyword(s)||Africa - extended family - investments - kinship - moral economy|
We analyse whether traditional sharing norms within kinship networks affect education decisions of poor black households in KwaZulu-Natal. Theory predicts that the size of the kinship network ambiguously impacts on the incentive to invest in human capital (due to opposing ‘empathy’ and ‘free-rider’ effects). Our empirical analysis, based on a range of different estimators, suggests the latter effect dominates: forced solidarity within the network discourages investments in human capital.