Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland
AbstractWe study the relationship between two distinct dimensions of social capital (bridging and bonding social capital) and the personal performances of individuals: their reported subjective well-being (SWB) and earnings. A theoretical model is put forward which explains the sources and dynamics of social capital formation. It predicts an inverse U-shaped relationship between any type of social capital and SWB, an inverse U-shaped relationship between bridging social capital and earnings, and an unambiguously negative impact of bonding social capital on earnings. The key predictions of the model are confirmed using cross-section survey data from the 2005 wave of the “Social Diagnosis” survey program conducted in Poland. Very low levels of bridging social capital observed in Poland imply that it is unambiguously beneficial to invest in it: both SWB of individuals and their earnings would increase in such case.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 7071.
Date of creation: 06 Dec 2007
Date of revision:
bridging social capital; bonding social capital; earnings; subjective well-being; Poland;
Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
- NEP-HAP-2008-02-16 (Economics of Happiness)
- NEP-SOC-2008-02-16 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Growiec, Katarzyna & Growiec, Jakub, 2010. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Individuals' Economic Performance and Well-Being in CEE Countries," MPRA Paper 23350, University Library of Munich, Germany.
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