The Compensating Income Variation of Social Capital

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

No 07-050/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

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.

This working paper has resulted in a publication in Social Indicators Research , 2007, 82(2), 189-207.

Keywords: life satisfaction; social capital (search for similar items in EconPapers)
JEL-codes: D1 D6 (search for similar items in EconPapers)
Date: 2007-06-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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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 (2006)
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