Under pressure: Assessing the cost of forced solidarity in Côte d'Ivoire
2023
Olie, Louis
Despite the extensive literature on forced solidarity – especially its substantial disincentive effects – some fundamental questions remain unanswered. How many households face pressure to share in a given country? How much does it cost to satisfy it? Which income group is the most impacted? What are the correlates of complying with strong sharing norms? This paper provides a novel measure of the pressure to share to answer these questions. Using nationally representative data from Côte d'Ivoire, I find that one in five Ivorian households faces social pressure to share income. They devoted 10% and 17% of household expenditure and income, respectively, to fulfill their social obligations. This social taxation concerns both the richest and poorest households. Overall, this study offers new insights into the economic cost of such practices and calls attention to targeting households in public cash transfer policies. Implications for policy and research are spelled out.
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