Culture and income across countries: evidence from family ties
ISSN: 0144-3585
Article publication date: 21 January 2021
Issue publication date: 11 February 2022
Abstract
Purpose
The purpose of the paper is to examine how much difference in income can be explained by familial culture that persists in different societies.
Design/methodology/approach
We employ a two-step methodology to evaluate the impact of familial culture on income across countries. In the first step, we construct the macro measures of familial culture from micro survey data. In the second step, the growth model is estimated.
Findings
First-step micro regression results show that family is more important to female, richer, highly educated, unemployed and married individuals. Male, poorer, less educated and unemployed individuals are more likely to respect and love parents unconditionally. The same group is also more likely to think that parents must do the best for their kids. Finally, the macro results show that the strength of national familial ties explains significant differences in income across countries.
Research limitations/implications
We show that countries with weak family ties are richer than those with strong family ties. These results are useful for policymakers who design public policies that accommodate the type of familial culture that persists in their society.
Originality/value
We construct the macro measures of familial culture from the micro survey data. The paper adds to the literature on the effect of culture on income at the macro level.
Keywords
Acknowledgements
Open data statement: In the interest of transparency, data sharing and reproducibility, the author(s) of this article have made the data underlying their research openly available. It can be accessed by following the link here: European and World Values Surveys four-wave integrated data file, 1981–2004, v.20060423, 2006. Surveys were designed and executed by the European Values Study Group and World Values Survey Association. File producers: ASEP/JDS, Madrid, Spain and Tilburg University, Tilburg, the Netherlands. File distributors: ASEP/JDS and GESIS, Cologne, Germany. World Values Survey (1981–2009) Official aggregate v.20090901, 2009. World Values Survey Association (http://www.worldvaluessurvey.org). Aggregate file producer: ASEP/JDS, Madrid. Maddison database http://www.ggdc.net/MADDISON/oriindex.htm.The authors thank the editor and an anonymous referee for very helpful critical comments and suggestions. Earlier versions of the paper was presented at Midwest Economics Association Annual Meeting, Mellen Chair Seminar Series at John Carroll University, and the Missouri Valley Economic Association Meeting. The authors thank the participants of these meetings for comments. All other errors are ours.
Citation
Lim, S., Kahai, S.K. and Khun, C. (2022), "Culture and income across countries: evidence from family ties", Journal of Economic Studies, Vol. 49 No. 2, pp. 213-226. https://doi.org/10.1108/JES-06-2020-0276
Publisher
:Emerald Publishing Limited
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