IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/27346.html
   My bibliography  Save this paper

Information and the Acquisition of Social Network Connections

Author

Listed:
  • 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.

Suggested Citation

  • Toman Barsbai & Victoria Licuanan & Andreas Steinmayr & Erwin Tiongson & Dean Yang, 2020. "Information and the Acquisition of Social Network Connections," NBER Working Papers 27346, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27346
    Note: DEV
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w27346.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John A. List & Azeem M. Shaikh & Yang Xu, 2019. "Multiple hypothesis testing in experimental economics," Experimental Economics, Springer;Economic Science Association, vol. 22(4), pages 773-793, December.
    2. David McKenzie & Dean Yang, 2015. "Evidence on Policies to Increase the Development Impacts of International Migration," The World Bank Research Observer, World Bank, vol. 30(2), pages 155-192.
    3. Nava Ashraf & Diego Aycinena & Claudia Martínez A. & Dean Yang, 2015. "Savings in Transnational Households: A Field Experiment among Migrants from El Salvador," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 332-351, May.
    4. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-3593, December.
    5. Parag Mahajan & Dean Yang, 2020. "Taken by Storm: Hurricanes, Migrant Networks, and US Immigration," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 250-277, April.
    6. Barr, Abigail & Dekker, Marleen & Fafchamps, Marcel, 2015. "The Formation of Community-Based Organizations: An Analysis of a Quasi-Experiment in Zimbabwe," World Development, Elsevier, vol. 66(C), pages 131-153.
    7. Tim Kaiser & Lukas Menkhoff, 2017. "Does Financial Education Impact Financial Literacy and Financial Behavior, and If So, When?," The World Bank Economic Review, World Bank, vol. 31(3), pages 611-630.
    8. Sarojini Hirshleifer & David McKenzie & Rita Almeida & Cristobal Ridao‐Cano, 2016. "The Impact of Vocational Training for the Unemployed: Experimental Evidence from Turkey," Economic Journal, Royal Economic Society, vol. 126(597), pages 2115-2146, November.
    9. Liran Einav & Amy Finkelstein, 2018. "Moral Hazard in Health Insurance: What We Know and How We Know It," Journal of the European Economic Association, European Economic Association, vol. 16(4), pages 957-982.
    10. Blumenstock, Joshua & Chi, Guanghua & Tan, Xu, 2019. "Migration and the Value of Social Networks," CEPR Discussion Papers 13611, C.E.P.R. Discussion Papers.
    11. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    12. Bruce Sacerdote, 2014. "Experimental and Quasi-Experimental Analysis of Peer Effects: Two Steps Forward?," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 253-272, August.
    13. Francesco Cecchi & Jan Duchoslav & Erwin Bulte, 2016. "Formal Insurance and the Dynamics of Social Capital: Experimental Evidence from Uganda," Journal of African Economies, Centre for the Study of African Economies, vol. 25(3), pages 418-438.
    14. Ambler, Kate, 2015. "Don't tell on me: Experimental evidence of asymmetric information in transnational households," Journal of Development Economics, Elsevier, vol. 113(C), pages 52-69.
    15. Gibson, John & McKenzie, David & Rohorua, Halahingano & Stillman, Steven, 2019. "The long-term impact of international migration on economic decision-making: Evidence from a migration lottery and lab-in-the-field experiments," Journal of Development Economics, Elsevier, vol. 138(C), pages 99-115.
    16. Ulf Rinne, 2013. "The evaluation of immigration policies," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 28, pages 530-552, Edward Elgar Publishing.
    17. Stefano Caria & Simon Franklin & Marc Witte, 2023. "Searching with Friends," Journal of Labor Economics, University of Chicago Press, vol. 41(4), pages 887-922.
    18. Pascaline Dupas, 2011. "Do Teenagers Respond to HIV Risk Information? Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 1-34, January.
    19. Mauro Testaverde & Harry Moroz & Claire H. Hollweg & Achim Schmillen, 2017. "Migrating to Opportunity," World Bank Publications - Books, The World Bank Group, number 28342.
    20. Lori A. Beaman, 2012. "Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 128-161.
    21. Ambler, Kate, 2013. "Don’t tell on me: Experimental evidence of asymmetric information in transnational households," IFPRI discussion papers 1312, International Food Policy Research Institute (IFPRI).
    22. Pernilla Andersson Joona & Lena Nekby, 2012. "Intensive Coaching of New Immigrants: An Evaluation Based on Random Program Assignment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 575-600, June.
    23. Slesh A. Shrestha & Dean Yang, 2019. "Facilitating Worker Mobility: A Randomized Information Intervention among Migrant Workers in Singapore," Economic Development and Cultural Change, University of Chicago Press, vol. 68(1), pages 63-91.
    24. Matthew O. Jackson & Brian W. Rogers, 2007. "Meeting Strangers and Friends of Friends: How Random Are Social Networks?," American Economic Review, American Economic Association, vol. 97(3), pages 890-915, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barsbai, Toman & Licuanan, Victoria & Steinmayr, Andreas & Tiongson, Erwin & Yang, Dean, 2024. "Information and immigrant settlement," Journal of Development Economics, Elsevier, vol. 170(C).
    2. Anandi Mani & Emma Riley, 2019. "Social networks, role models, peer effects, and aspirations," WIDER Working Paper Series wp-2019-120, World Institute for Development Economic Research (UNU-WIDER).
    3. Giambra, Samuele & McKenzie, David, 2021. "Self-employment and migration," World Development, Elsevier, vol. 141(C).
    4. David McKenzie & Dean Yang, 2015. "Evidence on Policies to Increase the Development Impacts of International Migration," The World Bank Research Observer, World Bank, vol. 30(2), pages 155-192.
    5. Catia Batista & Gaia Narciso, 2018. "Migrant Remittances and Information Flows: Evidence from a Field Experiment," The World Bank Economic Review, World Bank, vol. 32(1), pages 203-219.
    6. Jean-Marie Baland & Roberta Ziparo, 2017. "Intra-household bargaining in poor countries," WIDER Working Paper Series wp-2017-108, World Institute for Development Economic Research (UNU-WIDER).
    7. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    8. Yang, Dean & Allen, James & Mahumane, Arlete & Riddell, James & Yu, Hang, 2023. "Knowledge, stigma, and HIV testing: An analysis of a widespread HIV/AIDS program," Journal of Development Economics, Elsevier, vol. 160(C).
    9. Bertoli, Simone & Murard, Elie, 2020. "Migration and co-residence choices: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 142(C).
    10. World Bank Group, 2018. "A Migrant’s Journey for Better Opportunities," World Bank Publications - Reports 30272, The World Bank Group.
    11. Bertoli, Simone & Gautrain, Elsa & Murard, Elie, 2020. "Left Behind, but Not Alone: Changes in Living Arrangements and the Effects of Migration and Remittances in Mexico," IZA Discussion Papers 13917, Institute of Labor Economics (IZA).
    12. Batista, Catia & Silverman, Dan & Yang, Dean, 2015. "Directed giving: Evidence from an inter-household transfer experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 2-21.
    13. Travis Baseler, 2025. "Migration Spillovers Within Families: Evidence from Thailand," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 55, January.
    14. Toman Barsai & Vojtĕch Bartoš & Victoria Licuanan & Andreas Steinmayr & Erwin Tiongson & Dean Yang & Vojtech Bartos, 2022. "Picture This: Social Distance and the Mistreatment of Migrant Workers," CESifo Working Paper Series 10177, CESifo.
    15. Aksoy, Cevat Giray & Poutvaara, Panu & Schikora, Felicitas, 2023. "First time around: Local conditions and multi-dimensional integration of refugees," Journal of Urban Economics, Elsevier, vol. 137(C).
    16. Bah, Tijan L. & Batista, Catia & Gubert, Flore & McKenzie, David, 2023. "Can information and alternatives to irregular migration reduce “backway” migration from The Gambia?," Journal of Development Economics, Elsevier, vol. 165(C).
    17. David McKenzie, 2024. "Fears and Tears: Should More People Be Moving within and from Developing Countries, and What Stops this Movement?," The World Bank Research Observer, World Bank, vol. 39(1), pages 75-96.
    18. Yann Algan & Quoc-Anh Do & Nicolò Dalvit & Alexis Le Chapelain & Yves Zenou, 2015. "How Social Networks Shape Our Beliefs: A Natural Experiment among Future French Politicians," Working Papers hal-03459820, HAL.
    19. repec:spo:wpmain:info:hdl:2441/78vacv4udu92eq3fec89svm9uv is not listed on IDEAS
    20. Kate Ambler & Diego Aycinena & Dean Yang, 2015. "Channeling Remittances to Education: A Field Experiment among Migrants from El Salvador," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 207-232, April.
    21. Joana Elisa Maldonado & Kristof De Witte & Koen Declercq, 2022. "The effects of parental involvement in homework: two randomised controlled trials in financial education," Empirical Economics, Springer, vol. 62(3), pages 1439-1464, March.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:27346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.