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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/0509/0509011.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series Others with number 0509011.

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    Length: 30 pages
    Date of creation: 14 Sep 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpot:0509011

    Note: Type of Document - pdf; pages: 30
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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. Samuel Bowles & Herbert Gintis, 2001. "Social Capital and Community Governance," Working Papers 01-01-003, Santa Fe Institute.
    2. James L. Heckman, 1999. "Causal Parameters and Policy Analysis in Economcs: A Twentieth Century Retrospective," NBER Working Papers 7333, National Bureau of Economic Research, Inc.
    3. Jeffrey Carpenter & Erika Seki, 2011. "Do Social Preferences Increase Productivity? Field Experimental Evidence From Fishermen In Toyama Bay," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 612-630, 04.
    4. Huck, Steffen & Kübler, Dorothea & Weibull, Jörgen, 2001. "Social norms and optimal incentives in firms," Working Paper Series in Economics and Finance 466, Stockholm School of Economics.
    5. 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.
    6. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    7. 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.
    8. 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.
    9. Ranis, G. & Ramirez, A. & Stewart, F., 1997. "Economic Growth and Human Development," Papers 787, Yale - Economic Growth Center.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
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