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Wage Determination in Social Occupations: the Role of Individual Social Capital

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  • Julie L. Hotchkiss
  • Anil Rupasingha

Abstract

We make use of predicted social and civic activities (social capital) to account for selection into "social" occupations. Individual selection accounts for more than the total difference in wages observed between social and non-social occupations. The role that individual social capital plays in selecting into these occupations and the importance of selection in explaining wage differences across occupations is similar for both men and women. We make use of restricted 2000 Decennial Census and 2000 Social Capital Community Benchmark Survey. Individual social capital is instrumented by distance weighted surrounding census tract characteristics.

Suggested Citation

  • Julie L. Hotchkiss & Anil Rupasingha, 2016. "Wage Determination in Social Occupations: the Role of Individual Social Capital," Working Papers 16-46, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:16-46
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    More about this item

    Keywords

    social capital; wage differentials; occupational choice; switching regression; non-public data; factor analysis;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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