DP15876 The Fetters of the Sib - An Experimental Study in Burkina Faso

Author(s): Myriam Hadnes, Michael Kosfeld, Marco Nilgen, Björn Vollan
Publication Date: March 2021
Keyword(s): Burkina Faso, Business Development, field experiment, Redristributive pressure, Sharing norms, Social norms
JEL(s): C93, D13, H24, H26, O12
Programme Areas: Development Economics, Organizational Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=15876

We conducted a field experiment in Burkina Faso to investigate the impact of sharing obligations within kin networks on entrepreneurial effort. The overall treatment effect we find is insignificant and goes in the opposite direction than previous literature suggests. Ex-post explorative analysis reveals that entrepreneurs in the two experimental groups reacted differently in their production process, with some entrepreneurs in the treatment group being able to utilize their kin network to their joint advantage.