Kin networks and quality of government: a regional analysis

Abstract This paper examines the relationship between kin-based institutions and quality of government in the regions of Spain, France, and Italy. The results show that the rate of cousin marriage during the twentieth century is a strong predictor of the modern-day quality of government in the regions of these three countries. Regions characterized by a higher prevalence of cousin marriage tend to have on average worse governance outcomes. This finding holds after accounting for country fixed effects and different variables that may be correlated with both consanguinity and regional quality of government, including an extensive array of geographical, historical, and contemporary factors. The observed association between cousin marriage and quality of government persists when I utilize an instrumental variable approach that exploits regional variation in the degree of historical exposure to the marriage laws of the medieval Catholic Church to address potential endogeneity concerns. Furthermore, the paper also provides evidence consistent with the idea that the effect of cousin marriage on the quality of government operates through its impact on a series of cultural traits such as impersonal trust, fairness, and conformity-obedience.