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Bridging Social Capital and Individual Earnings: Evidence for an Inverted U

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  • Katarzyna Growiec

    (University of Social Sciences and Humanities)

  • Jakub Growiec

    (Warsaw School of Economics
    Narodowy Bank Polski)

Abstract

Based on data on a cross section of individuals surveyed in the 1999–2002 wave of World and European Values Surveys, we investigate the multilateral associations between bridging social capital, individuals’ earnings, as well as social trust and employment status. Our analysis provides robust evidence that the relationship between bridging social capital and earnings is inverted-U shaped. We carry out a range of tests in order to ascertain that this result is not driven by regressor endogeneity or omitted variables bias. We also identify significant interaction effects between bridging social capital, social trust, and employment status.

Suggested Citation

  • Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
  • Handle: RePEc:spr:soinre:v:127:y:2016:i:2:d:10.1007_s11205-015-0980-z
    DOI: 10.1007/s11205-015-0980-z
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    References listed on IDEAS

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    8. Katarzyna Growiec & Jakub Growiec, 2014. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries," Journal of Happiness Studies, Springer, vol. 15(5), pages 1015-1040, October.
    9. Growiec, Katarzyna & Growiec, Jakub, 2014. "Social Capital, Trust, And Multiple Equilibria In Economic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 18(2), pages 282-315, March.
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    11. Lucy Barnes, 2013. "Does Median Voter Income Matter? The Effects of Inequality and Turnout on Government Spending," Political Studies, Political Studies Association, vol. 61(1), pages 82-100, March.
    12. Jakub Growiec & Katarzyna Growiec, 2014. "The impact of bridging and bonding social capital on individual earnings: Evidence for an inverted U," NBP Working Papers 175, Narodowy Bank Polski, Economic Research Department.
    13. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    14. Growiec, Jakub & Growiec, Katarzyna, 2007. "Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland," MPRA Paper 7071, University Library of Munich, Germany.
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    Cited by:

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    2. Fabio Sabatini & Francesco Sarracino, 2017. "Online Networks and Subjective Well-Being," Kyklos, Wiley Blackwell, vol. 70(3), pages 456-480, August.
    3. Luis Rene Caceres, 2019. "Determinants of trust in government in Latin America," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(3), pages 329-351, Julio - S.
    4. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    5. YODO Masato & YANO Makoto, 2017. "Household Income and the OECD's Four Types of Social Capital," Discussion papers 17119, Research Institute of Economy, Trade and Industry (RIETI).
    6. Irene Daskalopoulou, 2019. "Individual-Level Evidence on the Causal Relationship Between Social Trust and Institutional Trust," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 275-298, July.

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