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The impact of bridging and bonding social capital on individual earnings: Evidence for an inverted U

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Abstract

Based on data on a cross section of individuals surveyed in the 1999-2002 wave of World and European Values Surveys, we investigate the extent to which bridging and bonding social capital as well as social trust interdependently affect individuals’ earnings. Our analysis provides robust evidence that the impact of bridging social capital on earnings is inverted-U shaped whereas the impact of bonding social capital is unambiguously negative and approximately linear. It is carefully ascertained that neither of these results is driven by regressor endogeneity or omitted variables bias. We also identify significant interaction effects between social capital, trust, and employment status.

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  • Jakub Growiec & Katarzyna Growiec, 2014. "The impact of bridging and bonding social capital on individual earnings: Evidence for an inverted U," NBP Working Papers 175, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:175
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    Cited by:

    1. Urszula Markowska-Przybyła, 2020. "Does Social Capital Matter for Total Factor Productivity? Exploratory Evidence from Poland," Sustainability, MDPI, vol. 12(23), pages 1-25, November.
    2. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    3. Breeta Banerjee & Amit Kundu, 2022. "Revisiting the Relationship Between Social Capital and Income of Informal Workers: An Empirical Analysis from Hooghly District of West Bengal, India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 747-778, September.
    4. Luis Rene Caceres, 2019. "Determinants of trust in government in Latin America," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 14(3), pages 329-351, Julio - S.

    More about this item

    Keywords

    bridging social capital; bonding social capital; social trust; earnings; nonlinearity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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