The Compensating Income Variation of Social Capital

Wim Groot (), Henriette Maassen van den Brink () and Bernard van Praag
Additional contact information
Wim Groot: Maastricht University
Henriette Maassen van den Brink: University of Amsterdam

No 2529, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: There is a small but growing literature on the determinants of social capital. Most of these studies use a measure of trust to define social capital empirically. In this paper we use three different measures of social capital: the size of the individual s social network, the extent of their social safety net and membership of unions or associations. A second contribution to the literature is that we analyze what social capital contributes to our well-being. Based on this, we calculate the compensating income variation of social capital. We find differences in social capital when we differentiate according to individual characteristics such as education, age, place of residence, household composition and health. Household income generally has a statistically significant effect. We find a significant effect of social capital on life satisfaction. Consequently, the compensating income variation of social capital is substantial.

Keywords: life satisfaction; social capital (search for similar items in EconPapers)
JEL-codes: D1 D6 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-12
New Economics Papers: this item is included in nep-cdm, nep-ltv, nep-pol and nep-soc
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Citations: View citations in EconPapers (2)

Published - published in: Social Indicators Research, 2007, 82 (2), 189-207

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Related works:
Working Paper: The Compensating Income Variation of Social Capital (2007)
Working Paper: The Compensating Income Variation of Social Capital (2007)
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