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Impact Of Social Capital On Individual Well-Being In Poland. Proxy-Based Approach

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Author Info

  • Anna Grochowska

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Paweł Strawiński

    ()
    (Faculty of Economic Sciences, University of Warsaw)

Abstract

In this paper we attempt to quantify the impact of social capital on individual well-being. We follow the Putnam (1995) approach and select five key social capital components to construct a synthetic index for social capital using a multivariate probit model. Social capital is considered as one of the three crucial individual endowments: physical capital, human capital and social capital. The impact of the synthetically constructed social capital index on individual’s well-being is estimated using a Mincer type earning equation. The results show that social capital explains up to 20% of income variation both at individual and household level. However, human capital and physical capital remain the critical determinants of individual income.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP36.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2010-13.

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Length: 26 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:war:wpaper:2010-13

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Keywords: social capital; income; well-being; local community; household;

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  1. Paolo Buonanno & Daniel Montolio & Paolo Vanin, 2006. "Does Social Capital Reduce Crime?," "Marco Fanno" Working Papers 0029, Dipartimento di Scienze Economiche "Marco Fanno".
  2. F Green & Stephen Machin & D Wilkinson, 1996. "Trade Unions and Training Practices in British Workplaces," CEP Discussion Papers dp0278, Centre for Economic Performance, LSE.
  3. Zhou, Lin, 1999. "Subjective probability theory with continuous acts," Journal of Mathematical Economics, Elsevier, vol. 32(1), pages 121-130, August.
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