Characterizing social networks and their effects on income diversification in rural Kerala, India. (June 2017)

• Record Type: Journal Article
• Authors: Johny, Judit; Wichmann, Bruno; Swallow, Brent M.
• Is Part Of: World development. Volume 94(2017)
• Page Start: 375
• Page End: 392
• Publication Date: 2017-06
• Subjects: social networks -- income diversification -- rural India -- network effects -- network centrality -- social stratification; Economic history -- 1990- -- Periodicals; Economic assistance -- Developing countries -- Periodicals; 330.9
• DOI: 10.1016/j.worlddev.2017.02.002
• Languages: English
• ISSNs: 0305-750X

Abstract

Highlights: Crop loss, caste, and resources affect income diversification in a poor and remote area of India. Social networks amplify the effects of those characteristics on income diversification. The number of network connections is more important than centrality of connections. Summary: Income diversification continues to be a key strategy for poor rural households, including those that are progressively developing and those operating under increasing distress. The ability of a household to diversify has been shown to depend upon its demographic and economic characteristics and its physical and social context. This paper considers the effects of intra-village social networks on household income diversification in one of the poorest and most ethnically diverse areas of the Indian state of Kerala. Using techniques adapted from spatial econometrics, we find that social connections within a village magnify the impacts of household characteristics such as education and number of adults by a factor of 3.6 times. Models with alternative measures of network centrality (degree and eigenvector) indicate that the number of network connections that a household has is more important than the centrality of those connections. Finally, we use social contact information to calculate assortative mixing based on caste. The results suggest social stratification in these villages, with higher levels of stratification associated with lower levels of income diversification.