The impact of social capital on consumption insurance and income volatility in the UK: evidence from the British Household Panel Survey

Filippo Maria Pericoli, E. Pierucci and Luigi Ventura

Review of Economics of the Household, 2015, vol. 13, issue 2, 269-295

Abstract: On British Household Panel Survey data we measure various indices of social capital at the individual and household level, and use them as explanatory variables in standard consumption insurance tests. We find that two out of three aspects of social capital positively impact on consumption smoothing, by reducing the sensitivity of idiosyncratic consumption to idiosyncratic income, both in the long and in the short run. Such effects, however, turn out to be more pronounced in the long run. Further confirmation of the positive impact of social capital on insurance opportunities are derived from an income smoothing exercise, as well as from a Poisson and a Logit analysis on the occurrence of unemployment spells. Copyright Springer Science+Business Media New York 2015

Keywords: Consumption insurance; Social capital; Income volatility; Item response theory; A14; C33; D12; D80 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Working Paper: The impact of social capital on consumption insurance and income volatility in U.K.: evidence from british household panel survey (2012)
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DOI: 10.1007/s11150-013-9185-x

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