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The Role Of Social Capital On Individual Labor Incomes In Brazil

Author

Listed:
  • Alexandre Rands

    (Datamétrica Consultoria, Pesquisa e Telemarketing)

  • Cristiane Mesquita Soares

    (Datamétrica Consultoria, Pesquisa e Telemarketing)

Abstract

This paper estimates the role of social capital in individual labor incomes in Brazil. It starts discussing the concept and the measurement of social capital, so that a procedure that identifies a group of individuals in society that has a negligible social capital can be built. As a consequence, the role of social capital in individual labor income can be estimated through a Mincerian type equation. Results indicate that this role reaches 63%, on average. This means that weak institutions have throw the Brazilian economy to a high dependence on social capital for the search processes in labor market and for the ability to generate trust on economic relationships. Therefore, public policies should always be concerned with their consequences for social capital formation and there should exist particular policies to increase trust and reduce the costs of search so that the role of social capital in individual incomes falls.

Suggested Citation

  • Alexandre Rands & Cristiane Mesquita Soares, 2009. "The Role Of Social Capital On Individual Labor Incomes In Brazil," Working Papers 33, Datamétrica Consultoria Econômica, revised 2009.
    • Handle: RePEc:dtm:wpaper:33
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    File URL: ftp://repec.datametrica.com.br/RePEc/dtm/wpaper/THEROLEOFSOCIALCAPITALONINDIVIDUALLABORINCOMESINBRAZIL33.pdf
    File Function: Revised version, 2009.
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    References listed on IDEAS

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    1. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(3), pages 999-1028.
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    Cited by:

    1. Alexandre Rands Barros, 2011. "The Regional Question in Brazil: Nature, Causes and Policies," Chapters, in: Werner Baer & David Fleischer (ed.), The Economies of Argentina and Brazil, chapter 17, Edward Elgar Publishing.

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