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Social Capital, Race, and Income Inequality in the United States

Author

Listed:
  • Baodong Liu

    (Department of Political Science, University of Utah, Salt Lake City, UT 84112-9155, USA)

  • Yehua Dennis Wei

    (Department of Geography, University of Utah, Salt Lake City, UT 84112-9155, USA)

  • Christopher A. Simon

    (Department of Political Science, University of Utah, Salt Lake City, UT 84112-9155, USA)

Abstract

Since the 1980s, the United States has witnessed increasing wealth concentration in the hands of the ultra-rich. Measured at the state level, the top 10 percent of income earners amassed roughly 43% of total income, and economic growth only enhanced this inequality between the ultrarich and the rest of citizens. This paper examines whether social capital plays a positive role in mitigating income inequality at the state level, with an emphasis on racial diversity and its relation to church attendance. The empirical findings demonstrate that social capital, whether measured by Robert Putnam’s state-level social capital index (SCI), or a new measure that improves SCI’s original measurement, fails to improve income equality. In comparison, racial diversity is found to be a consistent contributor of income inequality. In states with a greater proportion of minority population, the ultra-rich tend to share more wealth and social capital potentially facilitates the ultra-rich to enjoy the benefit of economic growth.

Suggested Citation

  • Baodong Liu & Yehua Dennis Wei & Christopher A. Simon, 2017. "Social Capital, Race, and Income Inequality in the United States," Sustainability, MDPI, vol. 9(2), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:2:p:248-:d:89977
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    References listed on IDEAS

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    1. Baodong Liu & Sharon D. Wright Austin & Byron D'Andrá Orey, 2009. "Church Attendance, Social Capital, and Black Voting Participation," Social Science Quarterly, Southwestern Social Science Association, vol. 90(3), pages 576-592, September.
    2. Mark W. Frank, 2009. "Inequality And Growth In The United States: Evidence From A New State‐Level Panel Of Income Inequality Measures," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 55-68, January.
    3. Yehua Dennis Wei & Weiye Xiao & Ming Wen & Ran Wei, 2016. "Walkability, Land Use and Physical Activity," Sustainability, MDPI, vol. 8(1), pages 1-16, January.
    4. Ignacio C. Fernández & David Manuel-Navarrete & Robinson Torres-Salinas, 2016. "Breaking Resilient Patterns of Inequality in Santiago de Chile: Challenges to Navigate towards a More Sustainable City," Sustainability, MDPI, vol. 8(8), pages 1-19, August.
    5. Claus-Heinrich Daub & Yvonne M. Scherrer & Arie H. Verkuil, 2014. "Exploring Reasons for the Resistance to Sustainable Management within Non-Profit Organizations," Sustainability, MDPI, vol. 6(6), pages 1-19, May.
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    Cited by:

    1. Ma Yuan & Cao Yue-qun & Wang Hao & Xiang Hong, 2022. "Does Social Capital Promote Health?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 501-524, July.
    2. Li, Shiyuan & Li, Yumin, 2021. "The Impact of Mobile Phone Adoption on Income Inequality," MPRA Paper 110969, University Library of Munich, Germany.
    3. Feixue Xiong & Shubin Zhu & Hui Xiao & Xiaolan Kang & Fangting Xie, 2021. "Does Social Capital Benefit the Improvement of Rural Households’ Sustainable Livelihood Ability? Based on the Survey Data of Jiangxi Province, China," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    4. Arkangel M. Cordero & Alexander C. Lewis, 2024. "How Does Regional Social Capital Structure the Relationship Between Entrepreneurship, Ethnic Diversity, and Residential Segregation?," Entrepreneurship Theory and Practice, , vol. 48(3), pages 788-825, May.
    5. Ren, Zhiyuan & Zhu, Yuhan & Jin, Canyang & Xu, Aiting, 2023. "Social capital and energy poverty: Empirical evidence from China," Energy, Elsevier, vol. 267(C).

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