Salary is Commensurate with Social Capital(in Japanese)

Yoshiho Matsunaga

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: People who trust others and actively engage in various kinds of social networks can earn more than people who don't. An estimation of the Mincerian wage regression function using the JGSS-2005 data reveals that social capital (trust and social networks) as well as human capital (schooling and work experience) increases a person's wage income. Previous studies clarified that gender, academic history, work history, and other such social attributes explain the determining factors for earnings. However, they suggested that there were social attributes other than those stated above, which were factors in determining earnings. This paper suggests that, with respect to the influence of social capital on annual salary, there is no difference between men and women. This is of a different nature to human capital.

Pages: 29 pages
Date: 2010-07
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