Age Set vs. Kin: Culture and Financial Ties in East Africa

Abstract

We study how social organization shapes patterns of economic interaction and the distributional consequences of public policy, focusing on the distinction between age-based and kin-based social structure in sub-Saharan Africa. In age-based ethnicities, known as ``age set societies,'' individuals are organized into social groups based on age cohort that take priority over kinship ties. Motivated by ethnographic accounts that suggest that these differences are important for financial transfers, we analyze an unconditional cash transfer program in Kenya and document that in age set societies there are large consumption spillovers within the age cohort, but not the extended family, while in kin-based societies we find the opposite pattern. Next, we document that local variation in social structure shapes the impact of national policy. Exploiting the staggered roll-out of Uganda's social pension program, we find that household exposure to the program has large, positive effects on child nutrition and educational investment in kin-based societies, but no impact on children in age set societies, where intergenerational ties are weak.