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 more for individuals from high welfare using language groups? The results strongly confirm the importance of networks in welfare participation.
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Paper provided by Princeton, Woodrow Wilson School - Public and International Affairs in its series Papers with number
201.
Length: 35 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:priwpu:201
Contact details of provider: Postal: PRINCETON UNIVERSITY, WOODROW WILSON SCHOOL OF PUBLIC AND INTERNATIONAL AFFAIRS, PRINCETON NEW- JERSEY 08542 U.S.A. Phone: (609) 258-4800 Web page: http://www.wws.princeton.edu/ More information through EDIRC
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Marianne Bertrand & Erzo F.P. Luttmer & Sendhil Mullainathan, 1999.
"Network Effects and Welfare Cultures,"
JCPR Working Papers
62, Northwestern University/University of Chicago Joint Center for Poverty Research.
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Find related papers by JEL classification: D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs I3 - Health, Education, and Welfare - - Welfare and Poverty R20 - Urban, Rural, and Regional Economics - - Household Analysis - - - General
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Edward P. Lazear, 1995.
"Culture and Language,"
NBER Working Papers
5249, National Bureau of Economic Research, Inc.
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