Exploring the Economic Impact of Age Set and Kin-Based Societies in East Africa: CID Faculty Research Insights

The study highlights the importance of understanding local social structures in shaping economic interactions and the effectiveness of development policies. In age set societies (which the authors estimate encompass over 200 million people), strong bonds within the cohort generate horizontal economic ties, making policies that focus on individual transfers more likely to result in spillovers within that age group. However, the lower importance of intergenerational financial ties suggests that age set societies might struggle with life-cycle consumption smoothing, potentially leaving vulnerable groups—such as children and the elderly—without adequate support.

In contrast, kin-based societies, which emphasize family and generational support, respond differently to public policies like pensions or cash transfers. In these societies, financial resources are more likely to flow across generations, ensuring that benefits extend to younger or more vulnerable family members. For example, Uganda’s pension program significantly improved child nutrition in kin-based societies but had no effect in age set societies, underscoring how social structure can amplify or constrain the impact of redistributive policies.

This research has crucial implications for policymakers in developing countries and beyond. Many anti-poverty programs and social safety nets are designed with an implicit assumption that financial transfers will benefit the entire household or community. However, this study demonstrates that the success of such programs depends heavily on the underlying social fabric. Policymakers must consider whether a society is more age or kinship-oriented when designing interventions. In age set societies, direct support for vulnerable age groups—such as children or the elderly—might be necessary to compensate for the lack of family-based redistribution. Conversely, in kin-based societies, policies can leverage strong intergenerational ties to achieve a broader impact.

This research also speaks to broader concerns about inequality and resilience. In age set societies, individuals at low-earning stages of the life cycle may have fewer resources to rely on, potentially exacerbating inequality across age groups. Kin-based societies may mitigate such risks but could foster inequality across extended families or clans. By revealing these dynamics, the study offers insights into how different social structures influence not only economic outcomes but also social cohesion and inequality in vulnerable communities.

Watch an animated video representation of this research paper by Econimate.