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How Do Neighbors Influence Investment in Social Capital? Homeownership and Length of Residence

  • Eiji Yamamura


This paper uses individual data from Japan to explore how the circumstances of where a person resides are related to the degree of their investment in social capital. Controlling for unobserved area-specific fixed effects and various individual characteristics, I found; (1) Not only that homeownership and length of residence are positively related to investment in social capital, but also that rates of homeownership and long-time residency in a locality increase an individual’s investments in social capital. (2) The effects of local neighborhood homeownership and local length of residence are distinctly larger than those of an individual’s homeownership or length of residence.

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Article provided by International Atlantic Economic Society in its journal International Advances in Economic Research.

Volume (Year): 17 (2011)
Issue (Month): 4 (November)
Pages: 451-464

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Handle: RePEc:kap:iaecre:v:17:y:2011:i:4:p:451-464
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  15. Yamamura, Eiji, 2008. "The effects of inequality, fragmentation, and social capital on collective action in a homogeneous society: Analyzing responses to the 2005 Japan Census," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2054-2058, October.
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  18. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
  19. Kamhon Kan, 2006. "Residential Mobility and Social Capital," IEAS Working Paper : academic research 06-A005, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  20. Kurt Annen, 2001. "Inclusive and Exclusive Social Capital in the Small-Firm Sector in Developing Countries," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 157(2), pages 319-, June.
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