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Social networks and resilience: evidence from rural Guinea-Bissau
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This study analyzes the effects of network centrality on vulnerability to shocks and examines the moderator role of centrality in the relationship between negative shocks and health expenditures. We use detailed network data collected in the village of Suzana, Guinea-Bissau. We elicited connections across different network dimensions, and constructed different centrality measures. Findings indicate that being a more central household reduces vulnerability. Further more, centrality significantly mitigates the negative effects of idiosyncratic shocks on health expenditures. Finally, results indicate that while health expenditure’s stabilization is achieved through the chatting and financial support dimensions, vulnerability is better insured through the chatting dimension.
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Social networks Centrality Shocks Vulnerability Health Guinea-Bissau