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THE ROLE OF SOCIAL CAPITAL ON INDIVIDUAL LABOR INCOMES IN BRAZIL

Alexandre Rands () and Cristiane Soares ()
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Alexandre Rands: Datamétrica Consultoria, Pesquisa e Telemarketing
Cristiane Soares: Datamétrica Consultoria, Pesquisa e Telemarketing

Authors registered in the RePEc Author Service: Alexandre Rands Barros ()

No 33, Working Papers from Datamétrica Consultoria Econômica

Abstract: This paper estimates the role of social capital in individual labor incomes in Brazil. It starts discussing the concept and the measurement of social capital, so that a procedure that identifies a group of individuals in society that has a negligible social capital can be built. As a consequence, the role of social capital in individual labor income can be estimated through a Mincerian type equation. Results indicate that this role reaches 63%, on average. This means that weak institutions have throw the Brazilian economy to a high dependence on social capital for the search processes in labor market and for the ability to generate trust on economic relationships. Therefore, public policies should always be concerned with their consequences for social capital formation and there should exist particular policies to increase trust and reduce the costs of search so that the role of social capital in individual incomes falls.

Keywords: Social capital; Social networks; Mincerian equation; Migration (search for similar items in EconPapers)
Pages: 20 pages
Date: 2009, Revised 2009
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Citations: View citations in EconPapers (1)

Published in Planejamento e Políticas Públicas, IPEA, p. 37 - 56, 01 jun. 2009. Published in Anais do Annual Meeting of the Latin American and Caribbean Economic Association, 2008

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ftp://repec.datametrica.com.br/RePEc/dtm/wpaper/TH ... NCOMESINBRAZIL33.pdf Revised version, 2009. (application/pdf)
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