IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/7071.html
   My bibliography  Save this paper

Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland

Author

Listed:
  • Growiec, Jakub
  • Growiec, Katarzyna

Abstract

We study the relationship between two distinct dimensions of social capital (bridging and bonding social capital) and the personal performances of individuals: their reported subjective well-being (SWB) and earnings. A theoretical model is put forward which explains the sources and dynamics of social capital formation. It predicts an inverse U-shaped relationship between any type of social capital and SWB, an inverse U-shaped relationship between bridging social capital and earnings, and an unambiguously negative impact of bonding social capital on earnings. The key predictions of the model are confirmed using cross-section survey data from the 2005 wave of the “Social Diagnosis” survey program conducted in Poland. Very low levels of bridging social capital observed in Poland imply that it is unambiguously beneficial to invest in it: both SWB of individuals and their earnings would increase in such case.

Suggested Citation

  • Growiec, Jakub & Growiec, Katarzyna, 2007. "Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland," MPRA Paper 7071, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7071
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/7071/1/MPRA_paper_7071.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699, Elsevier.
    2. Paul F. Whiteley, 2000. "Economic Growth and Social Capital," Political Studies, Political Studies Association, vol. 48(3), pages 443-466, June.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    4. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003. "Fifty Years of Mincer Earnings Regressions," NBER Working Papers 9732, National Bureau of Economic Research, Inc.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    6. Sjoerd Beugelsdijk & Sjak Smulders, 2003. "Bridging and Bonding Social Capital: which type is good for economic growth?," ERSA conference papers ersa03p517, European Regional Science Association.
    7. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Growiec, Katarzyna & Growiec, Jakub, 2010. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Individuals' Economic Performance and Well-Being in CEE Countries," MPRA Paper 23350, University Library of Munich, Germany.
    2. 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.
    3. Lopaciuk-Gonczaryk, Beata, 2019. "Social Capital Formation Through a Polish LETS: Challenging the Presumed Merits of Local Currencies," Ecological Economics, Elsevier, vol. 158(C), pages 75-87.
    4. Jakub Growiec & Bogumił Kamiński & Katarzyna Growiec, 2017. "Social Network Structure and The Trade-Off Between Social Utility and Economic Performance," EcoMod2017 10279, EcoMod.
    5. Katarzyna Growiec & Jakub Growiec, 2011. "Trusting only whom you know, knowing only whom you trust: the joint impact of social capital and trust on individuals’ economic performance and happiness in CEE countries," NBP Working Papers 94, Narodowy Bank Polski.
    6. 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.
    7. Sztaudynger Jan Jacek, 2014. "Family And Economic Growth In Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 14(2), pages 53-75, December.
    8. 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).
    9. Heijke, J.A.M. & Ioakimidis, M., 2013. "A cross-country analysis of the relationship between income inequality and social capital," ROA Technical Report 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    10. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," KAE Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    11. 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.
    12. Urszula Markowska-Przybyła & David Ramsey, 2014. "A game theoretical study of generalized trust and reciprocation in Poland. I. Theory and experimental design," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 24(3), pages 59-76.
    13. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2018. "Social Network Dynamics: Individual-Level Mechanisms and Aggregate Outcomes," KAE Working Papers 2018-036, Warsaw School of Economics, Collegium of Economic Analysis.
    14. Beata Łopaciuk-Gonczaryk, 2019. "Does Participation in Social Networks Foster Trust and Respect for Other People—Evidence from Poland," Sustainability, MDPI, vol. 11(6), pages 1-25, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Shweta Bahl & Ajay Sharma, 2021. "Education–Occupation Mismatch and Dispersion in Returns to Education: Evidence from India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 251-298, January.
    3. Felicia Ionescu, 2011. "Risky Human Capital and Alternative Bankruptcy Regimes for Student Loans," Journal of Human Capital, University of Chicago Press, vol. 5(2), pages 153-206.
    4. Harmon, Colm & Hogan, Vincent & Walker, Ian, 2003. "Dispersion in the economic return to schooling," Labour Economics, Elsevier, vol. 10(2), pages 205-214, April.
    5. Carpio, Miguel Angel, 2011. "Do pension wealth, pension cost and the nature of pension system affect coverage? Evidence from a country where pay-as-you-go and funded systems coexist," MPRA Paper 34926, University Library of Munich, Germany.
    6. Bram Wouterse & Karen Wiel & Marc Steeg, 2017. "Income Differences Between PhDs and Masters: Evidence from The Netherlands," De Economist, Springer, vol. 165(4), pages 439-461, December.
    7. Marc van der Steeg & Karen van der Wiel & Bram Wouterse, 2014. "Individual Returns to a PhD Education in the Netherlands: Income Differences between Masters and PhDs," CPB Discussion Paper 276, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Marc van der Steeg & Karen van der Wiel & Bram Wouterse, 2014. "Individual Returns to a PhD Education in the Netherlands: Income Differences between Masters and PhDs," CPB Discussion Paper 276.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Alan Manning & Joanna Swaffield, 2008. "The gender gap in early-career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, July.
    10. Muhammad Nauman Malik & Masood Sarwar Awan, 2016. "Analysing Econometric Bias and Non-linearity in Returns to Education of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 837-851.
    11. Henderson, Daniel J. & Polachek, Solomon W. & Wang, Le, 2011. "Heterogeneity in schooling rates of return," Economics of Education Review, Elsevier, vol. 30(6), pages 1202-1214.
    12. Nikolov, Plamen & Jimi, Nusrat & Chang, Jerray, 2020. "The Importance of Cognitive Domains and the Returns to Schooling in South Africa: Evidence from Two Labor Surveys," Labour Economics, Elsevier, vol. 65(C).
    13. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions and Rates of Return," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 1-31.
    14. Grant Johnston, 2004. "Healthy, wealthy and wise? A review of the wider benefits of education," Treasury Working Paper Series 04/04, New Zealand Treasury.
    15. Serneels, Pieter & Beegle, Kathleen & Dillon, Andrew, 2017. "Do returns to education depend on how and whom you ask?," Economics of Education Review, Elsevier, vol. 60(C), pages 5-19.
    16. Jung, Taehyun & Ejermo, Olof, 2014. "Demographic patterns and trends in patenting: Gender, age, and education of inventors," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 110-124.
    17. Ayşegül Şahin, 2004. "The incentive effects of higher education subsidies on student effort," Staff Reports 192, Federal Reserve Bank of New York.
    18. Andini, Corrado, 2009. "How Fast Do Wages Adjust to Human-Capital Productivity? Dynamic Panel-Data Evidence from Belgium, Denmark and Finland," IZA Discussion Papers 4583, Institute of Labor Economics (IZA).
    19. Bilkic, N. & Gries, T. & Pilichowski, M., 2012. "Stay in school or start working? — The human capital investment decision under uncertainty and irreversibility," Labour Economics, Elsevier, vol. 19(5), pages 706-717.
    20. Blundell, Richard & Graber, Michael & Mogstad, Magne, 2015. "Labor income dynamics and the insurance from taxes, transfers, and the family," Journal of Public Economics, Elsevier, vol. 127(C), pages 58-73.

    More about this item

    Keywords

    bridging social capital; bonding social capital; earnings; subjective well-being; Poland;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:7071. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.