Social capital and neighborhood stability: An empirical investigation

Abstract

There is a growing consensus among urban analysts that inner‐city neighborhoods suffer from a lack of social capital. Because these areas do not have a strong social infrastructure in place to support successful revitalization efforts, urban policy recommendations now call for developing social capital in the worst‐off parts of our cities. However, this consensus has been reached without any empirical analysis of the effect of social capital on urban neighborhoods. Moreover, there have been few, if any, efforts to show how to measure social capital at a neighborhood level.

This article proposes a social capital model of neighborhood change that measures social capital as a function of two constitutive elements: sociocultural milieu and institutional infrastructure. In addition, we present a theoretical model to show how social capital affects neighborhood stability and an empirical analysis that provides evidence of the positive effect social capital has on neighborhood stability.     

The utility of bonding social capital

Abstract

In most studies of social capital, bridging social capital is emphasized as ‘good’ for democracy and economic performance. It is rarer to find studies showing that bonding social capital can bring positive effects. Mostly, bonding social capital is either overlooked or depicted as the ‘villain’ that leads to ethnic conflict, intolerant behaviour and poor economic and democratic development. In this article, it is argued that this picture needs to be revised. If we assume that bonding trust is a negative force for development and democracy, we ignore a substantial portion of the political history of the West. Also, new empirical evidence from India suggests that bonding social capital is related to good governance. High levels of bonding trust cannot only facilitate political cooperation. They may also work as a shield against public sector employees who attempt to exploit citizens in a corrupt or clientelistic manner. The conclusion drawn in the article is that the view of social capital as a prime mover with inherent normatively attractive qualities should give way to a perspective where social capital is more properly regarded as an intermediate variable where the way it is combined with, or interacts with, other factors determines outcomes.     

Does social capital increase public support for economic globalisation?

The dominant explanation of public attitudes vis‐à‐vis economic globalisation focuses on re‐distributional implications, with an emphasis on factor endowments and government‐sponsored safety nets (the compensation hypothesis). The empirical implication of these theoretical arguments is that in advanced economies, on which this article focuses, individuals endowed with less human and financial capital will be more likely to experience income losses. Hence they will oppose economic openness unless they are compensated by the government. It is argued here that including social capital in the analysis can fill two gaps in explanations relying on factor endowments and the compensation hypothesis. First, generalised trust – one key aspect of social capital – constitutes a personal endowment alongside human and financial capital. Second, structural social capital – another key aspect of social capital – can be regarded as a nongovernmental social safety net that can compensate for endowment‐related disadvantages of individuals. Both aspects of social capital are expected to contribute, for distinct reasons, to more positive views on economic openness. The empirical testing relies on survey data for two countries: Switzerland and the United States. For both countries, the results indicate that generalised trust has a strong, positive effect on public opinion of economic globalisation, whereas structural social capital has no effect.     

Introduction: Social Capital in Scandinavia

In this special issue of Scandinavian Political Studies it is explored how the concept of social capital relates to the Scandinavian context. It is common knowledge that Scandinavia performs well with regard to many aspects of social capital, such as the level of trust and the density of membership in voluntary associations. Contrary to developments in the United States, there is little evidence of a decline in social capital in Scandinavia. There are thus several reasons why Scandinavia offers an especially interesting testing ground for many of the hypotheses and problems generated by social capital theory. What kind of empirical evidence do we have for the changes of social capital in Scandinavia? If high levels of social capital are indeed an important attribute of Scandinavian society, how can such high levels be maintained? What is the relation between, on the one hand, social capital in the form of norms about reciprocity and, on the other hand, the Social Democratic type of encompassing and universal welfare state? Is there something special about the types of mechanisms that are behind the abundance and maintenance of social capital in Scandinavia? It is argued that the high level of social capital in the Scandinavian countries can be explained by (a) the high degree of economic equality, (b) the low level of patronage and corruption and (c) the predominance of universal non‐discriminating welfare programmes.     

Drinking from the Talent Pool: A Resource Endowment Theory of Human Capital and Agency Performance

This article advances a resource endowment theory of human capital and performance in government organizations. Building on research on human capital and firm location in business economics and task complexity in public management, the authors argue that an agency's ability to implement policy is determined both by its scale and by the human capital of the population from which it draws its employees. The authors cast labor as a factor of production in public agencies and argue that access to higher‐quality labor improves government effectiveness. The effect of human capital on performance is especially pronounced when agencies are charged with the implementation of technically complex tasks. The empirical subject is U.S. municipal water utilities’ compliance with the Safe Drinking Water Act. Comparing records of compliance with more and less complex regulatory requirements provides evidence consistent with the general model. The findings carry important implications for public management and policy design.     

Social capital in the Japanese youth labor market: Labor market policy,schools, and norms

This paper develops the concept of institutional social capital and discusses its importance in the labor market. Institutional social capital is constituted by the resources inherent in an organization (such as a school) and thereby available to members of that organization. This is contrasted with the social capital available to individuals through their own personal networks. In the labor market context, an example of institutional social capital is the ties that schools have with employers who recruit a proportion of their new employees as they prepare to graduate. The paper examines how these ties and the norms governing the important labor market screening role played by the high school developed in post-WWII Japan. I also discuss an important positive externality – social control over students – generated by schools institutional social capital. Finally, I examine current challenges to Japanese high schools institutional social capital.     

Social Identity and Social Capital: The Collective Self at Work

Organizational scholars and institutional theorists have shown a great deal of interest in the concept of social capital. To a large extent, this interest has been fueled by accumulating evidence that social capital plays a vital role in the development of more cooperative, productive, and stable relationships within organizations and institutions. Recognizing these benefits, a major focus of recent theoretical efforts has been explicating the antecedents of social capital. Drawing on concepts from social identity theory and related theories of the self, this paper develops a framework for conceptualizing how individuals' psychological identification with a collective enhances their willingness to engage in behaviors that contribute to the creation and maintenance of social capital. The paper reviews empirical evidence in favor of the framework and draws out some of its theoretical and applied implications.     

Social capital,voluntary associations and collective action: Which aspects of social capital have the greatest ‘civic’ payoff?

Abstract

Despite a great variety of theoretical approaches, empirical analyses of social capital are surprisingly similar. Virtually all of them treat membership in voluntary associations as the chief indicator of community involvement while neglecting another form of community involvement: participation in elite-challenging actions. Likewise, authors readily attribute manifold civic benefits to associational life, while hesitating to attribute such benefits to elite-challenging activity. We question these views on two grounds. Firstly, we argue that elite-challenging action reflects social capital, even though this is a specific form of it: an emancipative form typical of self-assertive publics. Secondly, we use data from the Value Surveys to demonstrate that elite-challenging action is linked with greater civic benefits, at both the individual and societal level, than is membership in voluntary associations. This finding confirms the concept of human development, which suggests that emancipative forms of social capital are more civic in their consequences than others. Following this concept, we show that mass self-expression values nurture emancipative social capital, in motivating elite-challenging action. Finally, we locate self-expression values and elite-challenging actions in a theory of emancipative social capital.     

Linking Social Capital to Political Participation: Voluntary Associations and Networks of Recruitment in Sweden1

That organizational involvement has a positive impact on political action is a well‐established finding in empirical research around the world. To account for this, theorists since Tocqueville have pointed to the returns in human capital, in particular ‘civic skills’, yielded by associations. This article, by contrast, is a study of whether social capital theory can help explain the same effect. According to the logic of ‘weak ties’, organizational involvement provides bridging social capital by connecting the individual to a wider range of people. As a result, the input of requests for participation increases and this ultimately leads to more activity. Unspecified in this argument, however, is what aspect of associational memberships is most conducive to such weak ties: the sheer number of memberships, or the extent to which one's memberships provide links to people of dissimilar social origin. In an unprecedented empirical test based on survey data from Sweden in 1997, it is shown that being connected to multiple voluntary associations is what matters for political activity, not the extent to which one's memberships cut across social cleavages. Moreover, the social capital mechanism of recruitment is more important in explaining this effect than the human capital mechanism of civic skills, since the former can account for why even passive members, not just organizational activists, may become more prone to take political action.     

The Dark Side of Social Capital Re-examined from a Policy Analysis Perspective: Networks of Trust and Corruption

Abstract

This work deepens the analysis of the “dark side” of social capital proposed by Alejandro Portes and Patricia Landlot and revisited by Peter Graeff. For this purpose, it combines the individualistic approach of economic theory with the social perspective of other social sciences to study the economics of corruption embedded in a social structure (a network of trust). It assesses the importance of social relations as a necessary condition to achieve corrupt objectives. To do so, a model of corrupt public contracts embedded in networks of trust is built. Theoretical evidence is found on the importance of networks of trust for the success of corrupt deals between officials and recipients. In addition, seeds are sown for future research and analysis of the role of institutions and monitoring agencies. Finally, the foundation is laid for research in the field of experimental economics to conduct an empirical examination of this proposed model and some policy implications are derived.     

Foundations of Relating: Theory and Evidence on the Formation of Street‐Level Bureaucrats’ Workplace Networks

Despite the importance of peers in forming role expectations, fostering group identity, and facilitating job learning, limited theory and empirical evidence exist on the antecedents of street‐level peer relationships. To address this gap, the authors draw on social capital and social exchange theories to develop hypotheses about the micro‐social foundations of street‐level bureaucrats’ peer selection. The hypotheses are tested using a rich data set from an intraorganizational network of teachers in a large urban school implementing a reform that strongly promoted frontline innovation. Both structural and instrumental considerations, such as seeking peers possessing characteristics and resources valued by the reform, figure prominently in the work relations of street‐level bureaucrats. These results imply that the introduction of improvement initiatives requiring frontline participation, in addition to altering work practices, may also alter social networks within the frontline of an organization in a manner that favors some frontline workers over others.     

Social capital and crime in New York City's low‐income housing

Abstract

This article presents evidence that components of social capital can play a prospective role in preventing crime in low‐income housing. It develops a conceptual approach to crime prevention involving social capital, alternative forms of ownership, and environmental design considerations. The study compares five programs that house New York City's poorest, mostly minority residents. The effectiveness of social capital in preventing crime is assessed using data from surveys of 487 buildings in Brooklyn, NY, and crime data from the New York City Police Department.

Results of the analysis indicate that three components of social capital—basic participation in tenant associations, tenant prosocial norms, and a building's formal organization—were all related to reducing various types of crime in the buildings under study 6 to 12 months after social capital was measured. The effectiveness of social capital was related to alternative ownership structures, building characteristics, and housing policy.     

Does social capital increase political accountability? An?empirical test for Flemish municipalities

Social capital has been shown to positively influence government performance. Boix and Posner (Br. J. Polit. Sci. 28:686–693, 1998) suggest a possible explanation: social capital makes citizens monitor the government more closely. Such monitoring will be more explicit to the extent that instrumental voting motivations outweigh expressive considerations. We identify social capital as a source that facilitates instrumental voting and thus political accountability. We present an empirical test of the Boix and Posner hypothesis and find a positive link between perceived quality of government and election results of the incumbent parties. Crucially, we find this link to be stronger in municipalities high in social capital.     

Strategic entry deterrence and terrorism: Theory and experimental evidence

Using a two stage rent-seeking framework, we present a simple model of strategic entry/terrorism deterrence and test the model using laboratory experiments. Our contest success function highlights the potential for strategic spillovers. The theory illustrates that, relative to a cooperative outcome, negative externalities lead to over-spending on deterrence and positive externalities lead to under-spending on deterrence. Our experimental results are broadly consistent; subjects in the negative externality treatment had higher expenditures. In contrast to theoretical predictions, participation decisions, while primarily driven by the probability of winning a contest, were influenced by a subject’s ability to participate in multiple contests.     

Social Capital and Urban Governance: Adding a More Contextualized 'Top-down' Perspective

There is growing interest in the social sciences in the concept of social capital and the role it plays in facilitating collaborative and collective actions. Within political science, it is the work of Robert Putnam which has dominated social capital research. This paper argues that the 'Putnam-school' approach is lacking in two main respects. First, the role played by public authorities in the creation of social capital is neglected. Second, the implications for governance cannot simply be read off from associational activity and 'stocks' of social capital. The concept of the political opportunity structure is offered and adapted to develop a framework for social capital analysis. Original empirical material from Birmingham is drawn upon and compared to earlier studies of the city in order to support and illustrate the arguments of the paper.     

The role of limited‐equity cooperatives in providing affordable housing

Abstract

This article develops an economic analysis of the role of limited‐equity cooperatives (LECs) in providing affordable housing. Using a model of the user costs of housing that focuses on housing externalities, it examines methods for overcoming externalities in multiunit rental dwellings.

Investment in management can reduce these externalities and thereby improve the quality of the housing environment, but the added cost excludes low‐income households from housing with a high level of management. LECs can reduce housing externalities without imposing the dollar costs of management on residents. They do this principally by attempting to attract a favorable resident population and by substituting self‐management for traditional hierarchical management. Given these findings, the article makes recommendations regarding the structure of a federally sponsored LEC program and draws implications for affordable housing policies in general. Finally, it calls for further empirical research into the desirable (and undesirable) features of self‐managed affordable housing.     

The myth of social capital in community development

Abstract

This article argues that contemporary interest in social capital by community development theorists, funders, and practitioners is misguided and needs to be thoroughly rethought. It argues that social capital, as understood by Robert Putnam and people influenced by his work, is a fundamentally flawed concept because it fails to understand issues of power in the production of communities and because it is divorced from economic capital. Therefore, community development practice based on this understanding of social capital is, and will continue to be, similarly flawed.

The article further argues that instead of Putnam's understanding of social capital, community development practice would be better served by returning to the way the concept was used by Glenn Loury and Pierre Bourdieu and concludes with a discussion of how these alternative theories of social capital can be realized in community development practice.     

Determinants of Pay‐as‐You‐Go Financing of Capital Projects: Evidence from the States

Although states have long practiced pay‐as‐you‐go in financing their capital projects as a supplement to debt, academia has paid scarce attention to pay‐go financing. This study fills in the niche by providing empirical evidence on what determines the use of pay‐go in financing capital projects. It develops a model that considers the preferences of both voters and politicians when they make capital financing decisions in a given institutional setting. The empirical results suggest that the use of pay‐go is affected by a state's income level, its economic conditions, the presence of a divided government, as well as its budgetary institutions.     

Measuring How Administration Shapes Citizenship: A Policy Feedback Perspective on Performance Management

Governments increasingly require administrators to develop outcome measurements that reflect a program's impact on society. But standard approaches to performance measurement have neglected the impact on citizenship outcomes—the individual civic capacities and dispositions and social bonds of civic reciprocity and trust. The concept is adapted from the growing policy feedback literature in political science, which offers strong empirical evidence that certain policies have measurable effects on citizenship outcomes such as political participation, social capital, a sense of civic belonging, and self-worth as a citizen. Using the Program Assessment Rating Tool as an example, the authors demonstrate the failure of performance assessments to consider the civic implications of public policies. They argue that performance management systems should focus on citizenship outcomes and offer a series of suggestions on how to measure such outcomes.     

Social capital and the revitalization of New York City's distressed inner‐city housing

Abstract

This article presents evidence that social capital can be an effective component of locally sponsored low‐income housing programs. It provides a model for measuring social capital at the building level, where it may be most effective in improving housing quality and security. The study compares five programs in New York City that house the city's poorest, mostly minority residents. The surveys from 487 buildings in Brooklyn, NY, were analyzed to compare the success of programs in maintaining and revitalizing landlord‐abandoned buildings taken by the city in lieu of taxes.

Results of the analysis demonstrate that the positive effects of tenant ownership were largely mediated by the higher levels of social capital found in these buildings. These levels have implications for the survival and economic advancement of poor households and civic participation in poor communities. The study suggests the value of alternative homeownership programs.