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The effects of human capital on social capital: a cross-country analysis

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  • Kevin Denny

    (Institute for Fiscal Studies and University College Dublin)

Abstract

This paper uses two sets of cross-country micro datasets to analyse individuals' participation in voluntary and community activities and organisations. Analysing countries in the International Adult Literacy Survey and focusing on the impact of human capital I find a consistently positive effect of years of education on participation with the marginal effect of an additional year being around 2 or 3% for most countries. The effects are somewhat higher in English speaking countries. However controlling for functional literacy reduces this significantly with literacy accounting for around half the marginal effect of education. Labour market effects are generally very weak Using instrumental variables for a subset of countries we test and are unable to reject the hypothesis that education is exogenous. Using Eurobarometer data yields higher estimated impacts of schooling for most countries. It is also shown how attitudes towards the ?hird sector?predict higher participation in some forms of volunteering while a measure of religiosity often predicts more altruistic volunteering.

Suggested Citation

  • Kevin Denny, 2003. "The effects of human capital on social capital: a cross-country analysis," IFS Working Papers W03/16, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:03/16
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    References listed on IDEAS

    as
    1. Kevin J Denny & Colm P Harmon, 2000. "Education Policy Reform and the Return to Schooling from Instrumental Variables," Working Papers 200012, School of Economics, University College Dublin.
    2. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    3. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute of Labor Economics (IZA).
    4. Dee, Thomas S., 2004. "Are there civic returns to education?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1697-1720, August.
    5. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    6. James Banks & Tanner, Tanner, 1998. "Modelling voluntary labour supply," IFS Working Papers W98/17, Institute for Fiscal Studies.
    7. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
    8. Brown, Eleanor & Lankford, Hamilton, 1992. "Gifts of money and gifts of time estimating the effects of tax prices and available time," Journal of Public Economics, Elsevier, vol. 47(3), pages 321-341, April.
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    Citations

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    Cited by:

    1. Jose Manuel Lasierra Esteban, 2014. "Una aproximación a los determinantes del Capital Social individual en España," Hacienda Pública Española / Review of Public Economics, IEF, vol. 210(3), pages 33-55, September.
    2. Denny, Kevin & Doyle, Orla, 2008. "Political Interest, Cognitive Ability and Personality: Determinants of Voter Turnout in Britain," British Journal of Political Science, Cambridge University Press, vol. 38(2), pages 291-310, April.
    3. Jingyue Zhang & Nan Lu, 2019. "What Matters Most for Community Social Capital among Older Adults Living in Urban China: The Role of Health and Family Social Capital," IJERPH, MDPI, vol. 16(4), pages 1-14, February.
    4. Luis Aranda & Martin Siyaranamual, 2014. "Are Smarter People Better Samaritans? Effect of Cognitive Abilities on Pro-Social Behaviors," Working Papers 2014:06, Department of Economics, University of Venice "Ca' Foscari".
    5. Huang, Jian & Maassen van den Brink, Henriëtte & Groot, Wim, 2009. "A meta-analysis of the effect of education on social capital," Economics of Education Review, Elsevier, vol. 28(4), pages 454-464, August.
    6. Hans-Jurgen Engelbrecht, 2004. "The transaction sector, the information economy, and economic growth in New Zealand: Taking hazledine seriously," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(1), pages 87-99.
    7. Brady, Gerard, 2013. "Network social capital and labour market outcomes Evidence from Ireland," MPRA Paper 47391, University Library of Munich, Germany.
    8. Anneli Kaasa, 2018. "Intangible factors and productivity: Evidence from Europe at the regional level," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 300-325, April.
    9. Francesca Borgonovi & Artur Pokropek, 2017. "Birthplace diversity, income inequality and education gradients in generalised trust: variations in the relevance of cognitive skills across 29 countries," JRC Research Reports JRC108582, Joint Research Centre.
    10. Kevin Denny & Orla Doyle, 2010. "Returns to basic skills in central and eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(1), pages 183-208, January.
    11. Jian Huang & Henriëtte Maassen van den Brink & Wim Groot, 2012. "Does education promote social capital? Evidence from IV analysis and nonparametric-bound analysis," Empirical Economics, Springer, vol. 42(3), pages 1011-1034, June.
    12. repec:ucn:wpaper:10197/946 is not listed on IDEAS
    13. Gerard Brady, 2015. "Network Social Capital and Labour Market Outcomes: Evidence For Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 163-195.
    14. Giorgio Di Pietro & Marcos Delprato, 2009. "Education and Civic Outcomes in Italy," Public Finance Review, , vol. 37(4), pages 421-446, July.
    15. Kevin Denny & Patrick Orla Doyle, 2005. "Political Interest, Cognitive Ability and Personality - Determinants of Voter Turnout in Britain," Working Papers 200511, School of Economics, University College Dublin.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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