Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland

Jakub Growiec and Katarzyna Growiec

MPRA Paper from University Library of Munich, Germany

Abstract: We study the relationship between two distinct dimensions of social capital (bridging and bonding social capital) and the personal performances of individuals: their reported subjective well-being (SWB) and earnings. A theoretical model is put forward which explains the sources and dynamics of social capital formation. It predicts an inverse U-shaped relationship between any type of social capital and SWB, an inverse U-shaped relationship between bridging social capital and earnings, and an unambiguously negative impact of bonding social capital on earnings. The key predictions of the model are confirmed using cross-section survey data from the 2005 wave of the “Social Diagnosis” survey program conducted in Poland. Very low levels of bridging social capital observed in Poland imply that it is unambiguously beneficial to invest in it: both SWB of individuals and their earnings would increase in such case.

Keywords: bridging social capital; bonding social capital; earnings; subjective well-being; Poland (search for similar items in EconPapers)
JEL-codes: D10 J20 (search for similar items in EconPapers)
Date: 2007-12-06
New Economics Papers: this item is included in nep-hap and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7071

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