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Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?

  • Fabio Sabatini

    (University of Rome La Sapienza & University of Cassino)

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    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. While the bonding social capital of strong family ties seems to be irrelevant, the bridging social capital of weak ties connecting friends and acquaintances is proved to exert a significant and positive influence both on labour productivity and on human development.

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    Paper provided by EconWPA in its series Others with number 0508005.

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    Length: 28 pages
    Date of creation: 07 Aug 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpot:0508005
    Note: Type of Document - pdf; pages: 28
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    1. Durlauf,S.N., 2001. "On the empirics of social capital," Working papers 3, Wisconsin Madison - Social Systems.
    2. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    3. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, vol. 112(483), pages 419-436, November.
    4. Peter Glick & David E. Sahn, 1998. "Health and productivity in a heterogeneous urban labour market," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 203-216, February.
    5. Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
    6. Huck, Steffen & Kübler, Dorothea & Weibull, Jörgen, 2001. "Social norms and optimal incentives in firms," SSE/EFI Working Paper Series in Economics and Finance 466, Stockholm School of Economics.
    7. Ranis, G. & Ramirez, A. & Stewart, F., 1997. "Economic Growth and Human Development," Papers 787, Yale - Economic Growth Center.
    8. 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.
    9. repec:tpr:qjecon:v:115:y:2000:i:1:p:45-97 is not listed on IDEAS
    10. Carpenter, Jeffrey P. & Seki, Erika, 2005. "Do Social Preferences Increase Productivity? Field Experimental Evidence from Fishermen in Toyama Bay," IZA Discussion Papers 1697, Institute for the Study of Labor (IZA).
    11. Fabio Sabatini, 2005. "Social capital as social networks. A new framework for measurement," Working Papers 83, University of Rome La Sapienza, Department of Public Economics.
    12. James L. Heckman, 1999. "Causal Parameters and Policy Analysis in Economcs: A Twentieth Century Retrospective," NBER Working Papers 7333, National Bureau of Economic Research, Inc.
    13. 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.
    14. Cörvers,F., 1996. "The impact of human capital on labour productivity in manufacturing sectors of the European Union," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    15. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, December.
    16. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
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