Do Positional Concerns Destroy Social Capital: Evidence from 26 Countries

Justina A. V. Fischer and Benno Torgler

MPRA Paper from University Library of Munich, Germany

Abstract: Research on the effects of positional concerns on individuals’ attitudes and behavior is sorely lacking. To address this deficiency, we use the International Social Survey Programme 1998 data on 25’000 individuals from 26 countries to investigate the impact of relative income position on three facets of social capital, covering horizontal and vertical trust as well as norm compliance. Testing relative deprivation theory, we identify a deleterious positional income effect for persons below the reference income, particularly for their social trust and confidence in secular institutions. Also often a social capital-lowering effect of relative income advantage occurs, while a rise in absolute income almost always contributes positively. These results indicate that a rise in income inequality in society too large is rather detrimental to the formation of social capital.

Keywords: Relative income; positional concerns; social capital; social norms; deprivation theory (search for similar items in EconPapers)
JEL-codes: D31 I30 Z13 (search for similar items in EconPapers)
Date: 2011-02-03
New Economics Papers: this item is included in nep-hme, nep-ltv and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: DO POSITIONAL CONCERNS DESTROY SOCIAL CAPITAL: EVIDENCE FROM 26 COUNTRIES (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28650

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