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Do Positional Concerns Destroy Social Capital: Evidence From 26 Countries

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  • JUSTINA A.V. FISCHER
  • BENNO TORGLER

Abstract

Research on the effects of positional concerns on individuals’ attitudes and behavior is sorely lacking. To address this deficiency, we use the International Social Survey Programme 1998 data on 25’000 individuals from 26 countries to investigate the impact of relative income position on three facets of social capital, covering horizontal and vertical trust as well as norm compliance. Testing relative deprivation theory, we identify a deleterious positional income effect for persons below the reference income, particularly for their social trust and confidence in secular institutions. Also often a social capital-lowering effect of relative income advantage occurs, while a rise in absolute income almost always contributes positively. These results indicate that a rise in income inequality in society too large is rather detrimental to the formation of social capital.
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  • Justina A.V. Fischer & Benno Torgler, 2013. "Do Positional Concerns Destroy Social Capital: Evidence From 26 Countries," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1542-1565, April.
    • Handle: RePEc:bla:ecinqu:v:51:y:2013:i:2:p:1542-1565
    DOI: j.1465-7295.2011.00441.x
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    1. Do Positional Concerns Destroy Social Capital: Evidence from 26 Countries
      by maximorossi in NEP-LTV blog on 2011-02-14 18:25:23

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    6. Eiji Yamamura & Yoshiro Tsutsui & Fumio Ohtake, 2016. "Relative Income Position and Happiness: Are Cabinet Supporters Different from Others in Japan?," The Japanese Economic Review, Springer, vol. 67(4), pages 383-402, December.
    7. Benno Torgler, 2014. "Can Tax Compliance Research Profit from Biology?," QuBE Working Papers 025, QUT Business School.
    8. Armenak Antinyan & Vardan Baghdasaryan & Aleksandr Grigoryan, 2018. "Social Preferences, Public Good Provision, Social Capital and Positional Concerns: Empirical Evidence from the South Caucasus," CERGE-EI Working Papers wp625, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
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    11. Antinyan, Armenak & Horváth, Gergely & Jia, Mofei, 2020. "Positional concerns and social network structure: An experiment," European Economic Review, Elsevier, vol. 129(C).
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    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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