Information and the Acquisition of Social Network Connections

Working Paper: NBER ID: w27346

Authors: Toman Barsbai; Victoria Licuanan; Andreas Steinmayr; Erwin Tiongson; Dean Yang

Abstract: How do information interventions affect individual efforts to expand social networks? We study a randomized controlled trial of a program providing information on settling in the U.S. for new immigrants from the Philippines. Improved information leads new immigrants to acquire fewer new social network connections. Treated immigrants make 16-28 percent fewer new friends and acquaintances and are 65 percent less likely to receive support from organizations of fellow immigrants. The treatment has no effect on employment, wellbeing, or other outcomes. Consistent with a simple model, the treatment reduces social network links more in places likely to have lower costs of acquiring network links (those with more prior fellow immigrants). Information and social network links appear to be substitutes in this context: better-informed immigrants invest less in expanding their social networks upon arrival. Our results suggest that endogenous reductions in acquisition of social network connections can reduce the effectiveness of information interventions.

Keywords: Information interventions; Social networks; Immigrant integration; Randomized controlled trial

JEL Codes: D83; D85


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Improved information (D83)Reduction in the number of new social network connections (D85)
Improved information (D83)Reduced likelihood of receiving support from organizations of fellow immigrants (F22)
Improved information (D83)No significant effects on employment outcomes (J68)
Reduction in the number of new social network connections (D85)No significant effects on employment outcomes (J68)
Improved information (D83)Reduced investment in developing social connections (Z13)

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