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Measuring Social Capital with Aggregated Indicators: A Case of Ecological Fallacy?

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  • Sibylle Puntscher
  • Christoph Hauser
  • Janette Walde
  • Gottfried Tappeiner

Abstract

Social capital has become a highly successful concept in social science despite widely perceived shortcomings in conceptualization and operationalization. The latter is frequently performed as a principal component analysis of individual survey data with subsequent aggregation to regional or national levels. The central focus of this paper is the interpretation of the diverging correlations observed between the dimensions elaborated on an individual and an aggregate level. We illustrate that the correlations of regionally aggregated components are the result of an improper application of a single-level model to a multilevel structure. This mechanism is demonstrated empirically by adopting results from the European Social Survey and elaborating dimensions of social capital from both individual and aggregate survey data for European regions. The findings clearly indicate that the observed ecological correlations are not simply spurious or inconsistent due to an ecological fallacy condition, but rather reflect the influence of regional driving forces. Researchers need to be more careful in taking account of the multilevel nature of the data in order to produce valid results. In fact, the often applied procedure of individual factorization and subsequent aggregation of data provides a mixture of the two level effects with potentially misleading implications. Copyright Springer Science+Business Media Dordrecht 2016

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  • Sibylle Puntscher & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2016. "Measuring Social Capital with Aggregated Indicators: A Case of Ecological Fallacy?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 431-449, January.
    • Handle: RePEc:spr:soinre:v:125:y:2016:i:2:p:431-449
    DOI: 10.1007/s11205-014-0843-z
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    Cited by:

    1. Sibylle Puntscher & Janette Walde & Gottfried Tappeiner, 2016. "Do methodical traps lead to wrong development strategies for welfare? A multilevel approach considering heterogeneity across industrialized and developing countries," Working Papers 2016-01, Faculty of Economics and Statistics, Universität Innsbruck.
    2. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "Measuring regional innovation in one dimension: More lost than gained?," Working Papers 2015-14, Faculty of Economics and Statistics, Universität Innsbruck.
    3. Cong Wang & Bodo Steiner, 2020. "Can social capital explain business performance in Denmark?," Empirical Economics, Springer, vol. 59(4), pages 1699-1722, October.
    4. Anna Ruelens & Bart Meuleman & Ides Nicaise, 2018. "Examining Measurement Isomorphism of Multilevel Constructs: The Case of Political Trust," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(3), pages 907-927, December.
    5. Michael Weiler & Oliver Hinz, 2019. "Without each other, we have nothing: a state-of-the-art analysis on how to operationalize social capital," Review of Managerial Science, Springer, vol. 13(5), pages 1003-1035, November.

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