Does Social Pressure Hinder Entrepreneurship in Africa? The Forced Mutual Help Hypothesis
Bibliographic Data
| ID | 9727125 |
|---|---|
| Authors | Philippe Alby (Toulouse School of Economics), Emmanuelle Auriol (0000-0003-2261-8736, Toulouse School of Economics), Pierre Nguimkeu (0000-0002-6744-4867, Georgia State University) |
| Year | 2020 |
| Volume | 87 |
| Issue | 346 |
| Pages | 299-327 |
| Publication date | 2020-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12330 |
| OpenAlex | W2897977896 |
| Language | EN |
| Citations received | 3 |
| References cited | 36 |
In the absence of a public safety net, wealthy Africans have the social obligation to share their resources with their needy relatives in the form of cash transfers and inefficient family hiring. We develop a model of entrepreneurial choice that accounts for this social redistributive constraint. We derive predictions regarding employment choices, productivity, and profitability of firms run by entrepreneurs of African versus non‐African origin. Everything else equal, local firms are overstaffed and less productive than firms owned by non‐locals, which discourages local entrepreneurship. Using data from the manufacturing sector, we illustrate the theory by structurally estimating the proportion of missing African entrepreneurs. Our estimates, which are suggestive due to the data limitation, vary between 8% and 12.6% of the formal sector workforce. Implications for the role of social protection are discussed
Business · Constraint (computer-aided design) · Economic growth · Economics · Entrepreneurship · Labour economics · Productivity · Profitability index · Workforce · Economic Growth and Development · Finance · Innovation and Socioeconomic Development · Microfinance and Financial Inclusion
Public Spending in the 20th Century
Social Assistance in Developing Countries
The Economics of Roscas and Intrahousehold Resource Allocation
Nudging Farmers to Use Fertilizer
Shadow economies around the world
Risk and Insurance in a Rural Credit Market
The Regulation of Entry
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program
The Regulation of Labor
Returns to Capital in Microenterprises
The Empirical Content of the Roy Model
Elements of social organization
Networks in the Modern Economy
Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies
Why So Many Local Entrepreneurs
A simple model of inequality, occupational choice, and development
Income hiding and informal redistribution
A structural econometric analysis of the informal sector heterogeneity
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
Distinguishing Limited Liability from Moral Hazard in a Model of Entrepreneurship
Occupational Choice and the Process of Development
Market Institutions in Sub-Saharan Africa
Pretending to Be Poor
When Does Community Conservatism Constrain Village Organizations
Business Success Through Social Networks? A Comment on Social Networks and Business Success
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2020 - 2023 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |