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Culture & social capital: creation of human capital and economic growth

Author

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  • Sistelo, Marta
  • Mazeda Gil, Pedro

Abstract

Culture and social capital may be variables of particular interest when explaining economic growth. In recent years, policymakers and economists have increasingly considered their role in economic growth, yet cultural capital and social capital are analyzed separately. Despite being different concepts of capital, in this paper we argue that there is a link between cultural and social capital, and both need to be accounted for when analyzing economic growth and welfare. We develop a theoretical dynamic general-equilibrium model using a mainstream endogenous economic growth set-up (namely with human capital accumulation), incorporating cultural and social capital. We use the model to devise long-run and transitional-dynamics effects from the perspective of both economic growth and welfare, explicitly considering the interplay between cultural and social capital and other forms of capital. A detailed calibration of the model allows for the derivation of quantitative results, with an emphasis on policy implications.

Suggested Citation

  • Sistelo, Marta & Mazeda Gil, Pedro, 2025. "Culture & social capital: creation of human capital and economic growth," MPRA Paper 126644, University Library of Munich, Germany, revised Oct 2025.
    • Handle: RePEc:pra:mprapa:126644
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    References listed on IDEAS

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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