The relationships between social capital and economic well-being ??? an individual level analysis

Social capital refers to social networks, trust, and norms. This study distinguished between bonding and bridging social capital, and examined relationships between these two types of social capital and economic well-being at the individual level. Bridging capital was measured as engagement in activities of various voluntary organizations, and bonding capital was measured by networks of kin and friends. The study first examined the impact of individual bonding and bridging capital on future economic well-being, and then the impact of individual economic well-being on future bonding and bridging capital development. The sample for the analysis included 3,198 non-student adults from the National Survey of Families and Households. Multivariate analyses indicated that: (a) individual bridging capital was positively associated with future economic well-being, but individual bonding capital was not; and (b) individual economic well-being was positively associated with future bridging capital development, but not with future bonding capital development. The study has useful policy and practice implications. The findings suggest that poverty alleviation programs that integrate social capital as an essential element should focus on strategies to enhance bridging capital. On the other hand, policy makers and social service agents need to carefully consider potential financial barriers faced by low-income people when helping them to develop bridging capital