Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model

Social Indicators Research

Volumn 128, Issue 2, 2016, Pages 881-907

  Guagnano, Giuseppina ^a   Santarelli, Elisabetta ^a   Santini, Isabella ^a  

^a SAPIENZA UNIVERSITY OF ROME   (Italy)

Author keywords

EU SILC; Generalized ordered logit model; Public policies; Social capital; Subjective poverty

Indexed keywords

EMPIRICAL ANALYSIS; LOGIT ANALYSIS; POVERTY; SOCIAL CAPITAL; SOCIOECONOMIC STATUS;

EUROPE;

EID: 84938788697     PISSN: 03038300     EISSN: 15730921     Source Type: Journal    
DOI: 10.1007/s11205-015-1061-z     Document Type: Article

References (88)

1. Abramovitz, M. (1986). Catching up, forging ahead and falling behind. The Journal of Economic History, 46(2), 385–406.
2. Abramovitz, M., & David, P. A. (1996). Convergence and deferred catch-up: Productivity leadership and the waning of American exceptionalism. In R. Landau, T. Taylor, & G. Wright (Eds.), The Mosaic of economic growth. Stanford: Stanford University Press.
3. Almond, G. A., & Verba, S. (1963). The civic culture: Political attitudes and democracy in five nations. Princeton, NJ: Princeton University Press.
4. Barr, A. (2000). Social capital and technical information flows in the Ghanaian manufacturing sector. Oxford Economic Papers, 52, 539–559.
5. Bebbington, A., & Perreault, T. (1999). Social capital, development, and access to resources in highland Ecuador. Economic Geography, 75(2), 395–418.
6. Bourdieu, P. (1986). The forms of capital. In J. Richardson (Ed.), Handbook of theory and research for the sociology of education. New York: Greenwood.
7. Buttler, F. (2013). What determines subjective poverty? Pre-print of the DFG Research Unit Horizontal Europeanization. Fakultät I · Carl - von - Ossietzky - Universität Oldenburg, Oldenburg, Germany. http://www.horizontal-europeanization.eu.
8. Case, A., & Deaton, A. (2002). Consumption, health, gender and poverty. Working paper Princeton University, 7/02.
9. Castilla, C. (2010). Subjective poverty and reference-dependence: Income over time, aspirations and reference groups. Working paper World Institute for Development Economics Research, 76/2010, ISBN 978-92-9230-314-3.
10. Christoforou, A., & Davis, J. B. (2014). Social capital and economics: Social values, power, and social identity. Routledge Advances in Social Economics. London: Routledge, Taylor & Francis Group.
11. Clemenceau, A., Museux, J. M., & Bauer, M. (2006). EU-SILC (community statistics on income and living conditions): Issues and challenges. In Proceedings of the Eurostat and statistics Finland international conference “comparative EU statistics on income and living conditions: Issues and challenges”, Helsinki, November, 6–8.
12. Coleman J. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94. Supplement: Organizations and institutions: Sociological and economic approaches to the analysis of social structure.
13. Coleman, J. (1990). Foundation of social theory. Cambridge, MA: The Belknap Press of Harvard University.
14. Coleman, J., Katz, E., & Menzel, M. (1966). Medical innovation: A diffusion study. New York: Bobbs-Merrill.
15. Collier, P. (1998). Social capital and poverty. Social capital initiative working paper no. 4. Washington, DC: World Bank.
16. Cracolici, M. F., Giambona F., & Cuffaro M. (2011). Composition of families and subjective economic well-being. An application to Italian context. ECINEQ working paper no. 195, Society for the Study of Economic Inequality.
17. Cracolici, M. F., Giambona, F., & Cuffaro, M. (2012). The determinants of subjective economic well-being: An analysis of Italian-Silc data. Applied Research Quality Life, 7, 17–47. doi:10.1007/s11482-011-9140-z.
18. Deutsch, J., & Silber, J. G. (2005). Measuring multidimensional poverty: An empirical comparison of various approaches. The Review of Income and Wealth, 51(1), 145–174.
19. Diener, E., Horwitz, J., & Emmons, R. A. (1985). Happiness of the very wealthy. Social Indicators Research, 16, 263–274.
20. Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: Three deades of progress. Psychological Bulletin, 125(2), 276–302.
21. Dolan, P., Peasgood, T., & White, M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of Economic Psychology, 29, 94–122.
22. Easterlin, R. A. (2001). Income and happiness: Towards a unified theory. The Economic Journal, 111(473), 465–484.
23. Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. Quarterly Journal of Economics, 112(4), 1203–1250.
24. Eurostat. (2009). EU-SILC 065 (2009 operation). Description of target variables: Cross-sectional and longitudinal 2009 operation (Version January 2010).
25. Eurostat. (2010). Income and living conditions in Europe. Luxembourg: Anthony B. Atkinson and Eric Marlier (Eds.).
26. Fernandez, R. M., Castilla, E. J., & Moore, P. (2000). Social capital at work: Networks and employment at a phone center. American Journal of Sociology, 105(5), 1288–1356.
27. Frey, B. S., & Stutzer, A. (2002). Happiness and economics. Princeton, NJ: Princeton University Press.
28. Fu, V. (1998). Estimating generalized ordered logit models. Stata Technical Bullettin, 44, 27–30.
29. Fukuyama, F. (1995). Trust: Social virtues and the creation of prosperity. NY: Free Press.
30. Galor, O., & Zeira, J. (1993). Income distribution and macroeconomics. Review of Economic Studies, 60(1), 35–52.
31. Glaeser, E. L., Laibson, D., & Sacerdote, B. (2002). An economic approach to social capital. The Economic Journal, 112, 437–458.
32. Goedemé, T., & Rottiers, S. (2011). Poverty in the enlarged European Union. A discussion about definitions and reference groups. Sociology Compass, 5(1), 77–91.
33. Goedhart, Th, Halberstadt, V., Kapteyn, A., & Van Praag, B. M. S. (1977). The poverty line: Concept and measurement. The Journal of Human Resources, 12, 503–520.
34. Granovetter, M. S. (1995). Getting a job: A study of contacts and careers. Chicago: University of Chicago Press.
35. Green, A., Preston, J., & Sabates, R. (2003). Education, equality and social cohesion: A distributional approach. Compare: A Journal of Comparative Education, 33(4), 453–470.
36. Grootaert, C. (1999). Social capital, household welfare and poverty in Indonesia. Local level institutions working paper no. 6. The World Bank Social Development Family Environmentally and Socially Sustainable Development Network, April.
37. Grootaert, C., Gi-Taik, O., & Swamy, A. (1999). The local level institutions study: Social capital and development outcomes in Burkina Faso. Local level institutions working paper no. 7. The World Bank Social Development Family Environmentally and Socially Sustainable Development Network, September.
38. Grootaert, C., & van Bastelaer, T. (2001). Understanding and measuring social capital: A synthesis of findings and recommendations from the social capital initiative. Social capital initiative working paper no. 24. Washington DC: World Bank.
39. Grootaert, C., & van Bastelaer, T. (2002). The role of social capital in development: An empirical assessment. Cambridge: Cambridge University Press.
40. Guagnano, G., Santarelli, E., & Santini, I. (2013). The role of social capital in self-perception of poverty. An exploratory analysis. Annals of the Department Methods and Models for Economics, Territory and Finance. Bologna: Patron (forthcoming).
41. Hassan, R., & Birungi, P. (2011). Social capital and poverty in Uganda. Development Southern Africa, 28(1), 19–37. doi:10.1080/0376835X.2011.545168.
42. Hayo, B., & Seifert, W. (2003). Subjective economic well-being in Eastern Europe. Journal of Economic Psychology, 24, 329–348.
43. Helliwell, J. F. (2001). Social capital, the economy and well-being. In K. Banting, A. Sharpe, & F. St-Hilaire (Eds.), The review of economic performance and social progress (pp. 55–60). Montreal: Institute for Research on Public Policy and Centre for the Study of Living Standards.
44. Herrera, J., Razafindrakoto, M., & Roubaud F. (2006). The determinants of subjective poverty: A comparative analysis in Madagascar and Peru. Working papers DT/2006/01, DIAL (Développement, Institutions et Mondialisation Montreal and Ottawa: Institute for Research on Public Policy and Centre for the Study of Living Standards).
45. Knack, S. (1999). Social capital, growth and poverty: A survey of cross-country evidence. Social capital initiative working paper no. 7. Washington: World Bank.
46. Knack, S., & Keefer, P. (1997). Does social capital have and economic payoff? A cross-country investigation. The Quarterly Journal of Economics, 112(4), 1251–1288.
47. Letki, N. (2006). Investigating the roots of civic morality: Trust, social capital, and institutional performance. Political Behavior, 28, 305–325. doi:10.1007/s11109-006-9013-6.
48. Levesque, M. (2005). Social capital, reducing poverty and public policy. Social capital in action. Thematic policy studies. PRI Project Social Capital as a Public Policy Tool, September, Canada.
49. Loopmans, M. (2001). Spatial structure and the origin of social capital: A geographical reapproach of social theory. In Proceedings of the congress on social capital: Interdisciplinary perspectives. Exeter, 15–20 September, pp. 41–60.
50. Maluccio, J., Haddad, L., & May, J. (2000). Social capital and Household Welfare in South Africa 1993–98. Journal of Development Studies, 36(6), 54–81.
51. Massoumi, E. (1986). The measurement and decomposition of multidimensional inequality. Econometrica, 54, 991–997.
52. Mc Bride, M. (2001). Relative-income effects on subjective well-being in the cross-section. Journal of Economic Behavior & Organization, 45, 251–278.
53. Mc Cullogh, P., & Nelder, J. A. (1989). Generalized linear model (2nd ed.). London: Chapman and Hall.
54. Narayan, D. (1999). Bonds and bridges. Social capital and poverty. New York: Poverty Group, World Bank.
55. Narayan, D., & Pritchett, L. (1999). Cents and sociability: Household income and social capital in rural Tanzania. Economic Development and Cultural Change, 47(4), 871–897.
56. North, D. C. (1990). Institutions. Institutional change and economic performance. Cambridge: Cambridge University Press.
57. Olken, B. A. (2006). Do television and radio destroy social capital? Evidence from Indonesian villages. American Economic Journal: Applied Economics, 1(4), 1–33.
58. Olson, M. (1982). The rise and decline of nations: Economic growth, stagflation and social rigidities. New Haven: Yale University Press.
59. Pedersen, P. J., & Schmidt, T. D. (2011). Happiness in Europe: Cross-country differences in the determinants of satisfaction with main activity. The Journal of Socio-Economics, 40(5), 480–489.
60. Peterson, B., & Harrel, F. E. (1990). Partial proportional odds models for ordinal response variables. Applied Statistics, 39(2), 205–217.
61. Pradhan, M., & Ravaillon, M. (2000). Measuring poverty using qualitative perceptions of consumption adequacy. Review of Economics and Statistics, 82(3), 462–471.
62. Putnam, R. (1995). Bowling alone: America’s declining social capital. Journal of Democracy, 6(1), 65–78.
63. Putnam, R. (2000). Bowling alone. The collapse and revival of American community. New York: Simon & Shuster.
64. Putnam, R., Leonardi, R., & Nanetti, R. (1993). Making democracy work: Civic traditions in modern Italy. Princeton: Princeton University Press.
65. Ravaillon, M., & Lokshin, M. (2002). Self-rated economic welfare in Russia. European Economic Review, 46, 1453–1473.
66. Reimer, W. (2002). Understanding social capital: Its nature and manifestations in rural Canada. A paper prepared for presentation at the CSAA annual conference, Toronto.
67. Rodriguez-Pose, A., & von Berlepsh, V. (2014). Social capital and individual happiness in Europe. Journal of Happiness Studies, 15(2), 357–386.
68. Rose, R. (1999). What does social capital add to individual welfare? An empirical analysis of Russia. Social capital initiative working paper no. 15. The Washington: World Bank.
69. Roslan, A.-H., Russayani, I., & Azam, N. A. A. (2010). Does social capital reduce poverty? A case study of rural households in Terengganu, Malaysia. European Journal of Social Sciences, 14(4), 556–566.
70. Santini, I., & De Pascale, A. (2012a). Social capital and its impact on poverty reduction: Measurement issues in longitudinal and cross-country comparisons. Towards a unified framework in the European Union. Working paper Department of Methods and Models for Economics, Territory and Finance, SAPIENZA University of Rome, 101.
71. Santini, I., & De Pascale, A. (2012b). Social capital and household poverty in Europe. Working paper Department of Methods and Models for Economics, Territory and Finance, SAPIENZA University of Rome, 109.
72. Selnik, C. (2003). What can we learn from subjective data? The case of income and well-being. Delta working paper, 06/2003, Paris.
73. Sen, A. (1982). Poverty and famines: An essay on entitlements and deprivation. Oxford: Clarendon Press.
74. Sen, A. (2000). Social exclusion: Concept, application and scrutiny. Social development papers no. 1. Office of Environment and Social Development Asian Development Bank, June.
75. Stanovnik, T., & Verbic, M. (2004). Percption of income satisfaction. An analysis of Slovenian households. HEW 0408003, EconWPA.
76. Tiepoh, M. G. N., & Reimer, B. (2004). Social capital, information flows and income creation in rural Canada: A cross-community analysis. Journal of Socio-Economics, 33, 427–448.
77. Tomlinson, M., Walker, R. & Williams, G. (2007). Measuring poverty in Britain as a Multidimensional Concept. Barnett papers in Social Research-University of Oxford, 7.
78. Van Praag, B., & Ferrer-i-Carbonell, A. (2006). A multi-dimensional approach to subjective poverty. In S. Kakwani & J. Silber (Eds.), Quantitative approaches to multidimensional poverty measurement. Palgrave MacMillan: Houndmills.
79. Van Praag, B. M. S., Fritjers, P., & Ferrer-i-Carbonell, A. (2003). The anatomy of subjective well-being. Journal of Economic Behavior & Organization, 51(1), 29–49.
80. Van Praag, B. M. S., Fritjers, P., & Ferrer-i-Carbonell, A. (2005). A multidimensional approach to subjective poverty. In Proceedings of the international conference on the many dimensions of poverty, Brasilia, 29–31 August.
81. Van Praag, B. M. S., Goedhart, Th, & Kapteyn, A. (1980). The poverty line—A pilot survey in Europe. The Review of Economics and Statistics, 62(3), 461–465.
82. Van Praag, B. M. S., & Van der Sar, N. (1988). Empirical uses of subjective measures of well-being: Household cost functions and equivalence scales. The Journal of Human Resources, 23(2), 193–210.
83. Whelan, C. T., & Maître, B. (2009). Europeanization of inequality and European reference groups. Journal of European Social Policy, 19(2), 117–130.
84. Williams, R. (2006). Generalized ordered logit/partial proportional odds models for ordinal dependent variables. Stata Journal, 6(1), 58–82.
85. Woolcock, M. (2002). Social capital in theory and practice: Where do we stand? In J. Isham, T. Kelly, & S. Ramaswamy (Eds.), Social capital and economic development: Well-being in developing countries. Cheltenhem: Edward Elgar.
86. Woolcock, M., & Narayan, D. (2000). Social capital: Implications for development theory, research, and policy. World Bank Research Observer, 15(2), 225–249.
87. Yip, W., Subramanian, S. V., Mitchell, A. D., Lee, D. T. S., Wang, J., & Kawachi, I. (2007). Does social capital enhance health and well-being? Evidence from rural China. Social Science and Medicine, 64, 35–49.
88. Yusuf, S. A. (2008). Social capital and household welfare in Kwara State, Nigeria. Journal of Human Ecology, 23(3), 219–229.