Working Paper: NBER ID: w30068
Authors: Andrea Civelli; Arya Gaduh; Alexander D. Rothenberg; Yao Wang
Abstract: We use detailed data from Indonesian cities to study how variation in density within urban areas affects social capital. For identification, we instrument density with soil characteristics, and control for community averages of observed characteristics. Under plausible assumptions, these controls address sorting on observables and unobservables. We find that lower density increases trust in neighbors and community participation. We also find that lower density is associated with lower interethnic tolerance, but this relationship is explained by sorting. Heterogeneity analysis suggests that crime in dense areas undermines community trust and participation, intensifying the negative impact of density.
Keywords: Urban Sprawl; Social Capital; Indonesia; Density; Community Participation
JEL Codes: D71; H41; R11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Urban Density (R12) | Trust in Neighbors (Z13) |
| Urban Density (R12) | Community Participation (L39) |
| Urban Density (R12) | Intergroup Tolerance (C92) |
| Urban Density + Crime Rates (R23) | Trust in Neighbors (Z13) |
| Urban Density + Crime Rates (R23) | Community Participation (L39) |