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Does Social Capital Improve Labour Productivity in Small and Medium Enterprises

Author

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  • Fabio Sabatini

Abstract

This paper carries out an empirical assessment of the relationship between social capital and labour productivity in small and medium enterprises in Italy. By means of structural equations models, the analysis investigates the effect of different aspects of the multifaceted concept of social capital. The bonding social capital of strong family ties and the bridging social capital shaped by informal ties connecting friends and acquaintances are proved to exert a negative effect on labour productivity, the economic performance, and human development. On the contrary, the linking social capital of voluntary organizations positively influences such outcomes.

Suggested Citation

  • Fabio Sabatini, 2006. "Does Social Capital Improve Labour Productivity in Small and Medium Enterprises," Working Papers 92, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp92
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    References listed on IDEAS

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    1. Joshua Herries & Daniel I. Rees & Jeffrey S. Zax, 2003. "Interdependence in worker productivity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 585-604.
    2. Fabio Sabatini, 2005. "Resources for the Study of Social Capital," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(2), pages 198-198, April.
    3. Golden, Miriam A., 2003. "Electoral Connections: The Effects of the Personal Vote on Political Patronage, Bureaucracy and Legislation in Postwar Italy," British Journal of Political Science, Cambridge University Press, vol. 33(02), pages 189-212, April.
    4. Jeffrey Carpenter & Erika Seki, 2011. "Do Social Preferences Increase Productivity? Field Experimental Evidence From Fishermen In Toyama Bay," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 612-630, April.
    5. Foley, Michael W. & Edwards, Bob, 1999. "Is It Time to Disinvest in Social Capital?," Journal of Public Policy, Cambridge University Press, vol. 19(02), pages 141-173, May.
    6. Lanse Minkler, 2003. "Managing Moral Motivations," Working papers 2003-06, University of Connecticut, Department of Economics.
    7. Huck, Steffen & Kübler, Dorothea & Weibull, Jörgen, 2001. "Social Norms and Optimal Incentives in Firms," Working Paper Series 565, Research Institute of Industrial Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. C. Guilmi & F. Clementi & T. Matteo & M. Gallegati, 2008. "Social networks and labour productivity in Europe: an empirical investigation," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 3(1), pages 43-57, June.
    2. Dinda, Soumyananda, 2009. "A Simple Complementary Development Mechanics for African Countries," MPRA Paper 55307, University Library of Munich, Germany, revised Apr 2014.
    3. Dinda, Soumyananda, 2008. "Social capital in the creation of human capital and economic growth: A productive consumption approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2020-2033, October.
    4. Soumyananda Dinda, 2014. "Inclusive growth through creation of human and social capital," International Journal of Social Economics, Emerald Group Publishing, vol. 41(10), pages 878-895, October.
    5. Isabel Neira Gómez & Marta Portela, 2011. "Determinantes del capital social," Investigaciones de Economía de la Educación volume 6,in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 60, pages 986-1001 Asociación de Economía de la Educación.
    6. Dinda, Soumyananda, 2012. "Social Capital Formation Ensuring Inclusive Growth: A Development Mechanics for Backward Region," MPRA Paper 66261, University Library of Munich, Germany, revised 12 Dec 2012.

    More about this item

    Keywords

    Labour productivity; Small and medium enterprises; Social capital; Social networks; Structural equations models.;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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