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Social capital II: determinants of economic connectedness

Author

Listed:
  • Raj Chetty

    (Harvard University)

  • Matthew O. Jackson

    (Stanford University)

  • Theresa Kuchler

    (NYU Stern School of Business)

  • Johannes Stroebel

    (NYU Stern School of Business)

  • Nathaniel Hendren

    (Harvard University)

  • Robert B. Fluegge

    (Harvard University)

  • Sara Gong

    (NYU Stern School of Business)

  • Federico Gonzalez

    (Harvard University)

  • Armelle Grondin

    (Harvard University)

  • Matthew Jacob

    (Harvard University)

  • Drew Johnston

    (Harvard University)

  • Martin Koenen

    (Harvard University)

  • Eduardo Laguna-Muggenburg

    (Grammarly)

  • Florian Mudekereza

    (Harvard University)

  • Tom Rutter

    (Harvard University)

  • Nicolaj Thor

    (Harvard University)

  • Wilbur Townsend

    (Harvard University)

  • Ruby Zhang

    (Harvard University)

  • Mike Bailey

    (Meta Platforms)

  • Pablo Barberá

    (Meta Platforms)

  • Monica Bhole

    (Meta Platforms)

  • Nils Wernerfelt

    (Meta Platforms)

Abstract

Low levels of social interaction across class lines have generated widespread concern1–4 and are associated with worse outcomes, such as lower rates of upward income mobility4–7. Here we analyse the determinants of cross-class interaction using data from Facebook, building on the analysis in our companion paper7. We show that about half of the social disconnection across socioeconomic lines—measured as the difference in the share of high-socioeconomic status (SES) friends between people with low and high SES—is explained by differences in exposure to people with high SES in groups such as schools and religious organizations. The other half is explained by friending bias—the tendency for people with low SES to befriend people with high SES at lower rates even conditional on exposure. Friending bias is shaped by the structure of the groups in which people interact. For example, friending bias is higher in larger and more diverse groups and lower in religious organizations than in schools and workplaces. Distinguishing exposure from friending bias is helpful for identifying interventions to increase cross-SES friendships (economic connectedness). Using fluctuations in the share of students with high SES across high school cohorts, we show that increases in high-SES exposure lead low-SES people to form more friendships with high-SES people in schools that exhibit low levels of friending bias. Thus, socioeconomic integration can increase economic connectedness in communities in which friending bias is low. By contrast, when friending bias is high, increasing cross-SES interactions among existing members may be necessary to increase economic connectedness. To support such efforts, we release privacy-protected statistics on economic connectedness, exposure and friending bias for each ZIP (postal) code, high school and college in the United States at https://www.socialcapital.org .

Suggested Citation

  • Raj Chetty & Matthew O. Jackson & Theresa Kuchler & Johannes Stroebel & Nathaniel Hendren & Robert B. Fluegge & Sara Gong & Federico Gonzalez & Armelle Grondin & Matthew Jacob & Drew Johnston & Martin, 2022. "Social capital II: determinants of economic connectedness," Nature, Nature, vol. 608(7921), pages 122-134, August.
  • Handle: RePEc:nat:nature:v:608:y:2022:i:7921:d:10.1038_s41586-022-04997-3
    DOI: 10.1038/s41586-022-04997-3
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    Cited by:

    1. Boneva, Teodora & Golin, Marta & Kaufmann, Katja Maria & Rauh, Christopher, 2022. "Beliefs about Maternal Labor Supply," IZA Discussion Papers 15788, Institute of Labor Economics (IZA).
    2. David E. Campbell, 2023. "Social Capital in a Divided America: The Relationship between Economic Bridging and Affective Polarization," The ANNALS of the American Academy of Political and Social Science, , vol. 708(1), pages 102-120, July.
    3. Gregg, John J. & Lavertu, Stéphane, 2023. "Test-based accountability and educational equity: Breaking through local district politics?," Economics of Education Review, Elsevier, vol. 97(C).
    4. J. Anthony Cookson & Corbin Fox & Javier Gil-Bazo & Juan Imbet & Christoph Schiller, 2024. "Social Media as a Bank Run Catalyst," Working Papers hal-04400382, HAL.
    5. Youssef Souidi, 2023. "Options attractives et ségrégation entre classes : quels effets de la suppression des sections bilangues et européennes à la rentrée 2016 ?," Institut des Politiques Publiques halshs-04439102, HAL.
    6. Yulia Evsyukova & Felix Rusche & Wladislaw Mill, 2023. "LinkedOut? A Field Experiment on Discrimination in Job Network Formation," CRC TR 224 Discussion Paper Series crctr224_2023_482, University of Bonn and University of Mannheim, Germany.
    7. Castriota, Stefano & Rondinella, Sandro & Tonin, Mirco, 2023. "Does social capital matter? A study of hit-and-run in US counties," Social Science & Medicine, Elsevier, vol. 329(C).
    8. Juan Imbet & J. Anthony Cookson & Corbin Fox & Christoph Schiller & Javier Gil-Bazo, 2024. "Social Media as a Bank Run Catalyst," Post-Print hal-04660083, HAL.
    9. Benjamin Goldman & Jamie Gracie & Sonya R. Porter, 2024. "Who Marries Whom? The Role of Segregation by Race and Class," Working Papers 24-30, Center for Economic Studies, U.S. Census Bureau.
    10. Blanco, Hector & Neri, Lorenzo, 2023. "Knocking It Down and Mixing It Up: The Impact of Public Housing Regenerations," IZA Discussion Papers 15855, Institute of Labor Economics (IZA).
    11. D’Agostino, T.J. & Madero, Cristóbal, 2023. "The Machuca experience: A retrospective case study of school-based socio-economic integration," International Journal of Educational Development, Elsevier, vol. 100(C).
    12. Kolkowski, Lukas & Cats, Oded & Dixit, Malvika & Verma, Trivik & Jenelius, Erik & Cebecauer, Matej & Rubensson, Isak Jarlebring, 2023. "Measuring activity-based social segregation using public transport smart card data," Journal of Transport Geography, Elsevier, vol. 110(C).
    13. Till Koebe & Zinnya Villar & Brahmani Nutakki & Nursulu Sagimbayeva & Ingmar Weber, 2024. "Unveiling local patterns of child pornography consumption in France using Tor," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    14. Obstfeld, David, 2023. "Higher aims fulfilled: The Social Capital Academy as a means for advancing underrepresented students in comprehensive university business schools," Business Horizons, Elsevier, vol. 66(5), pages 631-642.
    15. Gutierrez-Lythgoe, Antonio, 2023. "El capital social y el autoempleo en EEUU: Evidencia con datos de Facebook [Social Capital and Self-Employment in the United States: Evidence from Facebook Data]," MPRA Paper 119068, University Library of Munich, Germany.
    16. Balakina, Olga & Bäckman, Claes & Parakhoniak, Anastasiia, 2024. "Beyond connectivity: Stock market participation in a network," SAFE Working Paper Series 416, Leibniz Institute for Financial Research SAFE.

    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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