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Impact Of Social Capital On Individual Well-Being In Poland. Proxy-Based Approach


  • Anna Grochowska

    () (Faculty of Economic Sciences, University of Warsaw)

  • Paweł Strawiński

    () (Faculty of Economic Sciences, University of Warsaw)


In this paper we attempt to quantify the impact of social capital on individual well-being. We follow the Putnam (1995) approach and select five key social capital components to construct a synthetic index for social capital using a multivariate probit model. Social capital is considered as one of the three crucial individual endowments: physical capital, human capital and social capital. The impact of the synthetically constructed social capital index on individual’s well-being is estimated using a Mincer type earning equation. The results show that social capital explains up to 20% of income variation both at individual and household level. However, human capital and physical capital remain the critical determinants of individual income.

Suggested Citation

  • Anna Grochowska & Paweł Strawiński, 2010. "Impact Of Social Capital On Individual Well-Being In Poland. Proxy-Based Approach," Working Papers 2010-13, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2010-13

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    References listed on IDEAS

    1. Paolo Buonanno & Daniel Montolio & Paolo Vanin, 2009. "Does Social Capital Reduce Crime?," Journal of Law and Economics, University of Chicago Press, vol. 52(1), pages 145-170, February.
    2. Francis Green & Stephen Machin & David Wilkinson, 1999. "Trade Unions and Training Practices in British Workplaces," ILR Review, Cornell University, ILR School, vol. 52(2), pages 179-195, January.
    3. Zhou, Lin, 1999. "Subjective probability theory with continuous acts," Journal of Mathematical Economics, Elsevier, vol. 32(1), pages 121-130, August.
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    More about this item


    social capital; income; well-being; local community; household;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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