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

No 92, Working Papers from University of Rome La Sapienza, Department of Public Economics

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.

Keywords: Labour productivity; Small and medium enterprises; Social capital; Social networks; Structural equations models (search for similar items in EconPapers)
JEL-codes: J24 R11 O15 O18 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-ent and nep-soc
Date: 2006-02
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Related works:
Working Paper: Does Social Capital Improve Labour Productivity in Small and Medium Enterprises? (2005)
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