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Social Capital and Urban Growth

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  • Edward L. Glaeser
  • Charles Redlick

Abstract

Social capital is often place-specific while schooling is portable, so the prospect of migration may reduce the returns to social capital and increase the returns to schooling. If social capital matters for urban success, it is possible that an area can get caught in a bad equilibrium where the prospect of out-migration reduces social capital investment and a lack of social capital investment makes out-migration more appealing. We present a simple model of that process and then test its implications. We find little evidence to suggest that social capital is correlated with either area growth or rates of out-migration. We do, however, find significant differences in the returns to human capital across space, and a significant pattern of skilled people disproportionately leaving declining areas. For people in declining areas, the prospect of out-migration may increase the returns to investment in human capital, but it does not seem to impact investment in social capital.

Suggested Citation

  • Edward L. Glaeser & Charles Redlick, 2008. "Social Capital and Urban Growth," NBER Working Papers 14374, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14374
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Eiji Yamamura, 2011. "How Do Neighbors Influence Investment in Social Capital? Homeownership and Length of Residence," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 451-464, November.
    2. Eiji Yamamura, 2011. "Homeownership and investment for social capital in Japan: Dynamic Panel approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2250-2259.
    3. Soogwan Doh & Edmund J. Zolnik, 2012. "Social capital and entrepreneurship: an empirical analysis of the role of social capital in self-employment," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 7, pages 160-191, Edward Elgar Publishing.
    4. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    5. Călin Vâlsan & Zizi Goschin & Elena Druică, 2023. "The Measurement of Social Capital in America: A Reassessment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(1), pages 135-161, January.
    6. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    7. Yamamura, Eiji, 2011. "Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 637-644.
    8. Soogwan Doh & Connie McNeely, 2012. "A multi-dimensional perspective on social capital and economic development: an exploratory analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 821-843, December.
    9. Mundula, Luigi & Auci, Sabrina, 2013. "Smart Cities and a Stochastic Frontier Analysis: A Comparison among European Cities," MPRA Paper 51586, University Library of Munich, Germany.
    10. Roberta De Santis & Alessandra Fasano & Nadia Mignolli & Anna Villa, 2015. "A primer on city "smartness" measurement," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(2), pages 34-51.
    11. Maxwell Hartt, 2018. "The diversity of North American shrinking cities," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2946-2959, October.
    12. Jose M Barrutia & Carmen Echebarria & Ainhize Gilsanz, 2011. "Social capital and innovation: an empirical analysis in the context of European regions," ERSA conference papers ersa10p1347, European Regional Science Association.
    13. De Santis, Roberta & Fasano, Alessandra & Mignolli, Nadia & Villa, Anna, 2014. "Smart city: fact and fiction," MPRA Paper 54536, University Library of Munich, Germany.
    14. repec:spo:wpmain:info:hdl:2441/20g3idj0jd9iqosvjjdcbu44lu is not listed on IDEAS
    15. Soogwan Doh & Zoltán J. Ács, 2015. "Innovation and Social Capital: A Cross-Country Investigation," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 23, pages 442-463, Edward Elgar Publishing.
    16. Cunningham, Chris & Patton, Michaela C. & Reed, Robert R., 2016. "Heterogeneous returns to knowledge exchange: Evidence from the urban wage premium," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 120-139.
    17. Joost Vaesen & Benjamin Wayens & Bas Van Heur & Walter Ysebaert & Caroline D'Andrimont & Wouter Kesbeke & Michel Hubert & Serge Jaumain & Lucy Amez & Eric Corijn & Sarah De Laet & Jelena Dobbels & Nic, 2014. "BSI synopsis. Higher Education and Brussels," ULB Institutional Repository 2013/247073, ULB -- Universite Libre de Bruxelles.
    18. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    19. Mauricio Ramírez Grajeda & Willy Cortez Yactayo, 2010. "Trade Openness and City Size with Taste Heterogeneity," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(3), pages 263-275.
    20. L. E. Limonov & M. V. Nesena & A. A. Semenov, 2020. "Application of Cost-Benefit Analysis to Evaluate the Efficiency of Cultural Heritage Preservation Projects in Historic Towns of Russia," Regional Research of Russia, Springer, vol. 10(4), pages 530-537, October.
    21. repec:kap:iaecre:v:17:y:2011:i:4:p:451-464 is not listed on IDEAS
    22. repec:hal:spmain:info:hdl:2441/20g3idj0jd9iqosvjjdcbu44lu is not listed on IDEAS

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    JEL classification:

    • D0 - Microeconomics - - General
    • H0 - Public Economics - - General
    • I0 - Health, Education, and Welfare - - General
    • J0 - Labor and Demographic Economics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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