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Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?

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  • Fabio Sabatini

    (University of Rome La Sapienza & University of Cassino)

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    Abstract

    This paper carries out an empirical assessment of the relationship between social capital and labour productivity in small and medium enterprises in Italy. By means of structural equations models, the analysis investigates the effect of different aspects of the multifaceted concept of social capital. While the bonding social capital of strong family ties seems to be irrelevant, the bridging social capital of weak ties connecting friends and acquaintances is proved to exert a significant and positive influence both on labour productivity and on human development.

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    File URL: http://128.118.178.162/eps/othr/papers/0508/0508005.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series Others with number 0508005.

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    Length: 28 pages
    Date of creation: 07 Aug 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpot:0508005

    Note: Type of Document - pdf; pages: 28
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    Web page: http://128.118.178.162

    Related research

    Keywords: Labour productivity; Small and medium enterprises; Social capital; Social networks; Structural equations models;

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    1. Jeffrey Carpenter & Erika Seki, 2005. "Do Social PreferencesIncrease Productivity? Field experimental evidence from fishermen in Toyoma Bay," Middlebury College Working Paper Series 0515, Middlebury College, Department of Economics.
    2. Ranis, G. & Ramirez, A. & Stewart, F., 1997. "Economic Growth and Human Development," Papers 787, Yale - Economic Growth Center.
    3. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-17, August.
    4. James J. Heckman, 2000. "Causal Parameters And Policy Analysis In Economics: A Twentieth Century Retrospective," The Quarterly Journal of Economics, MIT Press, vol. 115(1), pages 45-97, February.
    5. S. Huck & D. Kübler & J. Weibull, 2002. "Social norms and optimal incentives in firms," SFB 373 Discussion Papers 2002,11, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    6. Peter Glick & David E. Sahn, 1998. "Health and productivity in a heterogeneous urban labour market," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 203-216, February.
    7. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    8. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    9. Samuel Bowles & Herbert Gintis, 2001. "Social Capital and Community Governance," Working Papers 01-01-003, Santa Fe Institute.
    10. Joshua Herries & Daniel I. Rees & Jeffrey S. Zax, 2003. "Interdependence in worker productivity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 585-604.
    11. Fabio Sabatini, 2005. "Social capital as social networks. A new framework for measurement," Working Papers 83, University of Rome La Sapienza, Department of Public Economics.
    12. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, July.
    13. Frank Corvers, 1997. "The impact of human capital on labour productivity in manufacturing sectors of the European Union," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 975-987.
    14. Fabio Sabatini, 2005. "Resources for the Study of Social Capital," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(2), pages 198-198, April.
    15. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
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