The Compensating Income Variation of Social Capital
AbstractThere is a small but growing literature on the determinants of social capital. Most of these studies use a measure of trust to define social capital empirically. In this paper we use three different measures of social capital: the size of the individual’s social network, the extent of their social safety net and membership of unions or associations. A second contribution to the literature is that we analyze what social capital contributes to our well-being. Based on this, we calculate the compensating income variation of social capital. We find differences in social capital when we differentiate according to individual characteristics such as education, age, place of residence, household composition, and health. Household income generally has a statistically significant effect. We find a significant effect of social capital on life satisfaction. Consequently, the compensating income variation of social capital is substantial.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1889.
Date of creation: 2007
Date of revision:
social capital; life satisfaction;
Other versions of this item:
- Wim Groot & Henri�tte Maassen van den Brink & Bernard M.S. van Praag, 2007. "The Compensating Income Variation of Social Capital," Tinbergen Institute Discussion Papers 07-050/3, Tinbergen Institute.
- Groot, Wim & Maassen van den Brink, Henriette & van Praag, Bernard M. S., 2006. "The Compensating Income Variation of Social Capital," IZA Discussion Papers 2529, Institute for the Study of Labor (IZA).
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