Family Ties


Alesina, Alberto, and Paola Giuliano. 2014. “Family Ties.” Handbook of Economic Growth, edited by Philippe Aghion and Steven N Durlauf, 2A: 177-215. The Netherlands: North Holland.
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We study the role of the most primitive institution in society: the family. Its organization and relationship between generations shape values formation, economic outcomes and influences national institutions. We use the World Values Survey to measure the strength of family ties and economic attitudes, controlling for country fixed effects. We study several economic attitudes, toward working women, society, generalized morality and civic engagement. Individuals with strong family ties have more traditional beliefs about the role of women in society, are more reluctant to accept changes in society and innovation and show a lower level of trust. We also uncover interesting correlations at the country level, where the strength of family ties is associated with lower GDP and lower quality of institutions. These results remain valid if one exploits the correlation between inherited family values and current institutions and level of development, indicating a strong persistence in family values. The quality of family relationships, on the positive side, increases happiness, life satisfaction, and self-reported health.

Last updated on 05/26/2015