Friends with Health Benefits: Does Individual-level Social Capital Improve Health&quest

Susan Averett (), Laura M Argys and Jennifer C Kohn
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Laura M Argys: Department of Economics, University of Colorado Denver, CB 181, PO Box 173364, CO 80217, Denver, USA
Jennifer C Kohn: Department of Economics and Business Studies, Drew University, 301 Lewis House, NJ 07940, Madison, USA

Eastern Economic Journal, 2014, vol. 40, issue 2, 201 pages

Abstract: We contribute to the growing literature exploring the effect of social capital (SC) on health in several ways. First, we compare three different measures of SC and find remarkable consistency in their effects on health. Second, we use a long panel and account for the time persistence of individual health. In addition, we create a continuous index of individual health and finally, we use dynamic panel data methods to control for the endogeneity of SC in a health model without the need for external instruments or exclusion restrictions. Our results confirm the strong association between SC and health and the importance of controlling for both heterogeneity and lagged health to avoid overstating the effect of SC on health.

Date: 2014
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