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 individualâs 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. This working paper has resulted in a publication in Social Indicators Research , 2007, 82(2), 189-207.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-050/3.
Date of creation: 25 Jun 2007
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life satisfaction; social capital;
Other versions of this item:
- Wim Groot & Henriette Maassen van den Brink & Bernard M.S. van Praag, 2007. "The Compensating Income Variation of Social Capital," CESifo Working Paper Series 1889, CESifo Group Munich.
- 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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