Lineage-Based Heterogeneity and Cooperative Behavior in Rural China

49 Pages Posted: 22 Aug 2017

See all articles by Quqiong He

Quqiong He

Donbei University of Finance and Economics

Ying Pan

Louisiana State University, Baton Rouge

Sudipta Sarangi

Virginia Polytechnic Institute & State University

Date Written: August 18, 2017

Abstract

This paper investigates how lineages, the commonly found organizations in rural villages of China, affect people’s intra- and cross-lineage cooperative behavior. We use data from the Chinese Household Income Project Survey 2002, which exclusively contains information about the lineage structure in these villages allowing us to classify three levels of lineage-based heterogeneity. Our identification strategy relies on the exogeneity of lineage-based heterogeneity. We find evidence that people in a village with higher lineage-based heterogeneity are less likely to exhibit reciprocity behavior within lineages or contribute to the provision of public goods that are jointly shared across lineages. The estimation results remain robust to the inclusion of various control variables and additional background characteristics. Finally, we examine a number of other economic outcomes and find that more homogenous villages do better than other types of villages.

Keywords: Cooperation, Lineage Networks, Reciprocity, Local Public Goods, China

JEL Classification: D71, O12, O17, H41

Suggested Citation

He, Quqiong and Pan, Ying and Sarangi, Sudipta, Lineage-Based Heterogeneity and Cooperative Behavior in Rural China (August 18, 2017). Available at SSRN: https://ssrn.com/abstract=3021590 or http://dx.doi.org/10.2139/ssrn.3021590

Quqiong He (Contact Author)

Donbei University of Finance and Economics ( email )

217 Jianshan St,
Shahekou
Dalian, Liaoning
China

Ying Pan

Louisiana State University, Baton Rouge ( email )

2118 Taylor Hall
Baton Rouge, LA 70803
United States

Sudipta Sarangi

Virginia Polytechnic Institute & State University ( email )

250 Drillfield Drive
Blacksburg, VA 24061
United States

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