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Community Organizations, Neighborhood Interactions, and Entrepreneurial Social Capital: Effects on Female Self-Employment Earnings


  • Tsuchiya, Ryuichiro


Few attempts have been made to study entrepreneurs' social networks in local communities. This study empirically explores the relationships between self-employed workers' involvement in local communities and their earnings. Examining whether their weak ties with community members and strong ties with their neighbors work differently, we hypothesize that while the former yields positive returns, a high involvement in their neighborhoods limits self-employed workers' access to extra-community contacts, causes free-rider problems, and produces leveling pressures. Our findings suggest that participating in local community organizations significantly raises self-employment earnings. Alternatively, self-employed workers strongly connected with their neighbors receive significantly lower earnings.

Suggested Citation

  • Tsuchiya, Ryuichiro, 2007. "Community Organizations, Neighborhood Interactions, and Entrepreneurial Social Capital: Effects on Female Self-Employment Earnings," Discussion Papers 2007-04, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2007-04

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    References listed on IDEAS

    1. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
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    More about this item


    Entrepreneurship; Social Capital; Local Community; Neighborhood Interaction; Social Networks;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification


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