Working Paper: CEPR ID: DP16263
Authors: Natalie Bau; Raquel Fernández
Abstract: This handbook chapter focuses on important interactions between the family and culture. We discuss the wide range of global variation in family institutions, variation which is in part sustained by cultural differences, and important recent changes in family structures. The chapter discusses why different family institutions arise, when they persist, and what forces may lead them to change. Furthermore, it examines changes in key family outcomes, such as the rise of female labor force participation, the decline in marriage, and the increase in divorce. These changes have been accompanied by and interact with cultural change. Finally, we show how cultural institutions related to the family, such as son preference, co-residence traditions, polygyny, and marriage payments, affect decision-making within the family and interact with policy. We conclude that studying the family in a vacuum, without accounting for the role of culture, may lead to misleading conclusions regarding the effects of policies, macroeconomic shocks, or technological change.
Keywords: family economics; culture; family structure; female labor force participation; intrahousehold bargaining; cultural change
JEL Codes: I00; J1; J11; J12; J13; J16; O11; O12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| cultural beliefs (Z18) | labor force participation (J22) |
| cultural beliefs (Z18) | fertility decisions (J13) |
| parental attitudes (J13) | children's outcomes (I24) |
| family institutions (J12) | economic outcomes (F61) |
| cultural traditions (Z13) | household decision-making processes (D13) |
| cultural beliefs surrounding son preference (J13) | skewed sex ratios (J79) |
| cultural practices (Z10) | family dynamics (J12) |
| cultural change (O33) | family organization (L22) |
| bride price (J12) | investment in daughters' education (I24) |