Nepotism, human capital and economic development
Perez Alvarez SM, Strulik H (2021)
Publication Type: Journal article
Publication year: 2021
Journal
Book Volume: 181
Pages Range: 211-240
DOI: 10.1016/j.jebo.2020.11.034
Abstract
This paper suggests that nepotism affects economic development by hindering human capital development. In our dynamic general equilibrium model, individuals perceiving nepotistic labor markets experience a weaker economic motive to invest in human capital. Nepotism is explained as an evolving cultural norm with different nepotistic equilibria, which are relevant for economic development. We test the central prediction of the model by relating scores from the Programme for International Student Assessment (PISA) to an indicator for perceived nepotism at the country level. Our findings indicate a negative association between nepotism and human capital. Subsample analysis and fixed effects estimations further corroborate the incentive narrative.
Authors with CRIS profile
Salvador Marcello Perez Alvarez
Lehrstuhl für Volkswirtschaftslehre mit dem Schwerpunkt Entwicklungsökonomik
Involved external institutions
Germany (DE)How to cite
APA:
Perez Alvarez, S.M., & Strulik, H. (2021). Nepotism, human capital and economic development. Journal of Economic Behavior & Organization, 181, 211-240. https://dx.doi.org/10.1016/j.jebo.2020.11.034
MLA:
Perez Alvarez, Salvador Marcello, and Holger Strulik. "Nepotism, human capital and economic development." Journal of Economic Behavior & Organization 181 (2021): 211-240.
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