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The effects of human capital on social capital: a cross-country analysis

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  • Kevin Denny

    () (Institute for Fiscal Studies and University College Dublin)

Abstract

This paper uses two sets of cross-country micro datasets to analyse individuals' participation in voluntary and community activities and organisations. Analysing countries in the International Adult Literacy Survey and focusing on the impact of human capital I find a consistently positive effect of years of education on participation with the marginal effect of an additional year being around 2 or 3% for most countries. The effects are somewhat higher in English speaking countries. However controlling for functional literacy reduces this significantly with literacy accounting for around half the marginal effect of education. Labour market effects are generally very weak Using instrumental variables for a subset of countries we test and are unable to reject the hypothesis that education is exogenous. Using Eurobarometer data yields higher estimated impacts of schooling for most countries. It is also shown how attitudes towards the ?hird sector?predict higher participation in some forms of volunteering while a measure of religiosity often predicts more altruistic volunteering.

Suggested Citation

  • Kevin Denny, 2003. "The effects of human capital on social capital: a cross-country analysis," IFS Working Papers W03/16, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:03/16
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    Cited by:

    1. Jose Manuel Lasierra Esteban, 2014. "Una aproximación a los determinantes del Capital Social individual en España," Hacienda Pública Española, IEF, vol. 210(3), pages 33-55, September.
    2. Luis Aranda & Martin Siyaranamual, 2014. "Are Smarter People Better Samaritans? Effect of Cognitive Abilities on Pro-Social Behaviors," Working Papers 2014:06, Department of Economics, University of Venice "Ca' Foscari".
    3. Huang, Jian & Maassen van den Brink, Henriëtte & Groot, Wim, 2009. "A meta-analysis of the effect of education on social capital," Economics of Education Review, Elsevier, vol. 28(4), pages 454-464, August.
    4. Gerard Brady, 2015. "Network Social Capital and Labour Market Outcomes: Evidence For Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 163-195.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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