Urban Sprawl and Social Capital: Evidence from Indonesian Cities

Andrea Civelli (), Arya Gaduh, Alexander Rothenberg and Yao Wang

No 30068, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use detailed data from Indonesian cities to study how variation in density within urban areas affects social capital. For identification, we instrument density with soil characteristics, and control for community averages of observed characteristics. Under plausible assumptions, these controls address sorting on observables and unobservables. We find that lower density increases trust in neighbors and community participation. We also find that lower density is associated with lower interethnic tolerance, but this relationship is explained by sorting. Heterogeneity analysis suggests that crime in dense areas undermines community trust and participation, intensifying the negative impact of density.

JEL-codes: D71 H41 R11 (search for similar items in EconPapers)
Date: 2022-05
New Economics Papers: this item is included in nep-sea, nep-soc and nep-ure
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Published as Andrea Civelli & Arya Gaduh & Alexander D Rothenberg & Yao Wang, 2023. "Urban Sprawl and Social Capital: Evidence from Indonesian Cities," The Economic Journal, vol 133(654), pages 2110-2146.

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Journal Article: Urban Sprawl and Social Capital: Evidence from Indonesian Cities (2023)
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