EconPapers    
Economics at your fingertips  
 

The economic consequences of mutual help in extended families

Jean-Marie Baland, Isabelle Bonjean, Catherine Guirkinger and Roberta Ziparo

Journal of Development Economics, 2016, vol. 123, issue C, 38-56

Abstract: In the absence of well-developed markets for credit and insurance, extended families play a major role as a traditional system of mutual help. However these arrangements have important consequences on economic choices. In this paper, we use first hand data from Western Cameroon to explore this question. We find that the large majority of transfers follow a given pattern whereby elder siblings support their younger siblings in the early stages of their lives who in turn reciprocate by supporting their elder siblings when they have children. We interpret this pattern as a generalised system of reciprocal credit within the extended family. We propose a simple overlapping generation model to investigate its welfare properties. We then explore the implications of this pattern on labour market outcomes and find evidence of large disincentive effects. This pattern of transfers also implies that younger siblings are more educated but have fewer and less educated children.

Keywords: Extended families; Africa; Transfers; Mutual help; Solidarity (search for similar items in EconPapers)
JEL-codes: D13 O1 O17 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030438781630058X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The economic consequences of mutual help in extended families (2016)
Working Paper: The economic consequences of mutual help in extended families (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:123:y:2016:i:c:p:38-56

DOI: 10.1016/j.jdeveco.2016.07.004

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:deveco:v:123:y:2016:i:c:p:38-56