Social relations and economic welfare at an individual level
AbstractOver the last few years, many studies have shown that social networks are important to the economic progress and the development of societies. In order to explain the determinants of social network formation, it is important to understand the motivations characterising the decisions of single agents with respect to their social behaviour. This paper presents evidence, through Italian microdata representative of the entire Italian population, that the quality and quantity of interpersonal relations of agents can increase their economic welfare. The analysis proposed seems to indicate that individuals also have an economic incentive to invest in social relations. Two proxies of interpersonal relations at an individual level are used. The first one, that is considered as a proxy for formal social relations, reflects the propensity of individuals to participate in different groups. The second one, that is interpreted as a proxy for the informal social relations, reflects the level of satisfaction of personal relationships of single agents with friends. This proxy is very useful to capture the quantitative aspects of informal interpersonal relations and the qualitative ones. Both formal and informal social relations of single agents seem to have a positive effect on their level of household economic welfare. This result proves robust to the inclusion of a variety of control variables and the use of different econometric methods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Others with number 0503001.
Length: 42 pages
Date of creation: 01 Mar 2005
Date of revision:
Note: Type of Document - pdf; pages: 42
Contact details of provider:
Web page: http://126.96.36.199
social interactions; social relations and economic welfare;
Find related papers by JEL classification:
- P - Economic Systems
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
- Z - Other Special Topics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-17 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.