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Relational Costs and the Production of Social Capital: Evidence from Carpooling

  • Kerwin Kofi Charles
  • Patrick Kline

This article posits that individuals can more easily form social connections with people if they are of the same race. If true, the greater the incidence among his neighbours of persons of his race, the more likely an individual is to make neighbourhood social capital connections and the more likely he is to engage in activities which require it. The article tests this idea using an indicator of individual social capital never previously studied: whether the person uses a carpool to get to work. The analysis accounts for fixed differences across neighbourhoods, and a variety of extensions address possible differential racial sorting into neighbourhoods. The evidence strongly supports the article's hypothesis. Copyright 2006 Royal Economic Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2006.01093.x
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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 116 (2006)
Issue (Month): 511 (04)
Pages: 581-604

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Handle: RePEc:ecj:econjl:v:116:y:2006:i:511:p:581-604
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  25. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
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  28. Gonzalez, Arturo, 1998. "Mexican Enclaves and the Price of Culture," Journal of Urban Economics, Elsevier, vol. 43(2), pages 273-291, March.
  29. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 965-990.
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