The Role Of Social Capital On Individual Labor Incomes In Brazil
AbstractThis 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.
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Bibliographic InfoPaper provided by Datamétrica Consultoria Econômica in its series Working Papers with number 33.
Length: 20 pages
Date of creation: 2009
Date of revision: 2009
Publication status: Published in Planejamento e Políticas Públicas, IPEA, p. 37 - 56, 01 jun. 2009. Published in Anais do Annual Meeting of the Latin American and Caribbean Economic Association, 2008
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Social capital; Social networks; Mincerian equation; Migration;
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- Björklund, Anders & Lindahl, Mikael & Plug, Erik, 2005.
"The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data,"
IZA Discussion Papers
1739, Institute for the Study of Labor (IZA).
- Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, MIT Press, vol. 121(3), pages 999-1028, 08.
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