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Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?

Fabio Sabatini
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Fabio Sabatini: University of Rome La Sapienza, Department of Public Economics

Industrial Organization from EconWPA

Abstract: This paper carries out an empirical assessment of the relationship between social capital and labour productivity in small and medium enterprises in Italy. By means of structural equations models, the analysis investigates the effect of different aspects of the multifaceted concept of social capital. While the bonding social capital of strong family ties seems to be irrelevant, the bridging social capital of weak ties connecting friends and acquaintances is proved to exert a significant and positive influence both on labour productivity and on human development.

Keywords: Labour productivity; Small and medium enterprises; Industrial organization; Social capital; Social networks; Structural equations models (search for similar items in EconPapers)
JEL-codes: J24 R11 O15 O18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-ent, nep-geo, nep-hrm, nep-soc and nep-ure
Date: 2005-12-16
Note: Type of Document - pdf; pages: 30
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