Though rarely stated the nuclear family—as opposed to the extended family or clan—played a seminal role in the growth of Western capitalism. Success in a modern economy requires us to trust strangers and think creatively. These traits were nurtured by the individualistic ethos of the medieval nuclear family. Not only were nuclear families, child-centered, but there was no obligation for parents to provide children with an inheritance. As such, children were motivated to plan long-term and work hard. Upon transitioning to adulthood, one was expected to exit the family home by relocating elsewhere and acquiring relevant skills.
Moreover, in northwestern Europe working prior to marriage was the norm for both men and women. Because people often pursued marriage at a later age, historians dubbed this development the Western European Marriage Pattern. This idea was popularized by John Hajnal who noted that since the sixteenth century parts of Europe have been characterized by late female marriage, high female celibacy, and the establishment of separate households for married couples resulting in the dominance of nuclear families.
Human capital formation also became an important pillar of the nuclear family. Parents were socially ambitious and wanted their children to eclipse them in status, so investing in education became a priority. Sociologist Brigitte Berger in her pathbreaking text The Family in the Modern Age opines that nuclear families could adapt to changes easier because they were freed from the constraints of the traditional extended family. So, essentially, the flexibility of the nuclear family stimulated creative thought that could unleash innovations.
Without a doubt, the transition to industrial capitalism for Western societies was more efficient, because the prevalence of the nuclear family minimized reliance on clans. Since citizens were no longer beholden to the strictures of the extended family, one had to develop a universal morality transcending loyalty to kin groups. So consequently, trusting strangers was not viewed as unfavorable. By increasing trust, the universal morality engendered by the nuclear family made it profitable to form business relationships with foreigners. Even in contemporary societies tribalism cultivates low outgroup trust and by extension prevents the emergence of pro-market institutions. Taking these factors into account the importance of the nuclear family in generating widespread trust is indeed an achievement.
Similarly, courtesy of economist Avner Greif, there is hard data indicating that medieval societies dominated by kinship groups were less efficient: “Monasteries, fraternities, and mutual-insurance guilds provided social safety nets against famine, unemployment, and disability. Most of the population belonged to such fraternities and guilds, at least in England. Because corporations provided social safety nets that were alternatives to those provided by kinship groups, they enabled individuals to take risks and make other economic decisions without interference by members of such groups. Relative to a society dominated by kinship groups, the nuclear family structure increased capital per worker by encouraging later marriages and fewer children, and it led to a more efficient distribution of labor and knowledge by facilitating migration.”
Interestingly, apart from the role of the nuclear family in fostering impartial norms, anthropologist Peter Frost suggests that evolution may have selected for weaker kinship ties in the west: “In North and West of the Hajnal line, kinship has been a weaker social force in relations since at least the early Middle Ages and perhaps the Mesolithic. Because of this weaker kinship environment, northwest Europeans cam to view social relations more through the lens of universal moral rules. Such rules were enforced by monitoring not only other community members but also oneself. The new mindset eventually developed within the bounds of phenotypic plasticity, but over time it would have been gradually hardwired through selection for independent social orientation and universal rule adherence...”
One cannot appreciate the rise of capitalism in the West without studying its relationship to the nuclear family. Studying the family can yield important insights into the socio-cultural evolution of society and capitalism. Economists commit a massive disservice by de-emphasizing the relevance of the family as an economic institution.
