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Investment in social capital by the Korean elderly and baby-boomers

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  • Hlasny, Vladimir
  • Lee, Jieun

Abstract

Social capital (SC) is both an input and an output of individuals’ economic choices, but relatively little is known about SC investment, particularly in individuals’ old age. With a premise that SC is an individual-level concept in which individuals purposely invest, we estimate elderly individuals’ stock and investment in SC using principal component analysis of their social engagement, networks, and trust in social institutions. We describe the distribution of the SC stock and investment across various demographic groups. Based on a capital-accumulation model, and using linear regressions and mixture models, we test hypotheses about the drivers – expected benefits, costs, depreciation, preexisting SC, and social-capital in one’s community – and trajectories of elderly individuals’ SC investment. Implications for their life satisfaction are also assessed.

Suggested Citation

  • Hlasny, Vladimir & Lee, Jieun, 2020. "Investment in social capital by the Korean elderly and baby-boomers," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    • Handle: RePEc:eee:joecag:v:17:y:2020:i:c:s2212828x20300219
    DOI: 10.1016/j.jeoa.2020.100256
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    References listed on IDEAS

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    More about this item

    Keywords

    Social capital; Networks; Baby-boomers; Ageing; Mixture model of group-based developmental trajectories;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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