Working Paper: CEPR ID: DP18024
Authors: Ruben Durante; Nicola Mastrorocco; Luigi Minale; James Snyder
Abstract: We use novel survey data from Italy to shed light on key questions regarding the measurement of social capital and the use of social capital indicators for empirical work. Our data cover a sample of over 600,000 respondents interviewed between 2000 and 2015. We identify four distinct components of social capital -- (i) social participation, (ii) political participation, (iii) general trust, and (iv) trust in institutions -- and examine how they relate to each other. We then study how each dimension of social capital relates to various socioeconomic factors both at the individual and the aggregate level, and to various proxies of social capital commonly used in the literature. Finally, building on previous work, we investigate to what extent different dimensions of social capital predict differences in key economic, political, and health outcomes. Our findings support the view that social capital is a multifaceted object with multiple dimensions that, while related, are distinct from each other. Future work should take such multi-dimensionality into account and carefully consider what measure of social capital to use.
Keywords: social capital; trust; culture; Italy
JEL Codes: A12; A13; P10; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| interpersonal trust (Z13) | financial development (O16) |
| social participation (D71) | crime rates (K42) |
| political participation (D72) | crime rates (K42) |
| blood donations (D64) | financial development (O16) |
| blood donations (D64) | crime rates (K42) |