università degli studi di siena quaderni del dipartimento di economia

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università degli studi di siena quaderni del dipartimento di economia
UNIVERSITÀ DEGLI STUDI DI SIENA
QUADERNI DEL DIPARTIMENTO
DI ECONOMIA POLITICA
Francesco Sarracino
Social Capital and Subjective Well-Being trends:
Evidence from 11 European countries
n. 558 – Marzo 2009
Abstract - Discovering whether social capital endowments in modern societies have been subjected or not to
a process of gradual erosion is one of the most debated topics in recent economic literature. This new stream
of research has been inaugurated by Putnam’s pioneering studies about social capital trends in the United
States. Recently, a considerable work by Stevenson andWolfers (2008) put a new emphasis on this topic
contending Easterlin’s assessment. Present work is aimed at analyzing the relationship between changes in
social capital and subjective well-being in Europe considering 11 different countries. In particular, we would
like to answer questions such as: 1) is social capital in Europe declining? Is such erosion a general trend of
modern societies or is it a characteristic feature of only some of them? 2) social capital trend can help to
explain subjective well-being trend? In so doing, our research considers three different set of proxies of
social capital controlling for time and socio-demographic aspects in eleven different European countries
using WVS data between 1980 and 2000.Our results are encouraging, showing evidence of a probable
relationship between social capital and happiness. Furthermore, our results show that during last twenty
years European citizens have persistently lost confidence in the judicial system, in the church, in armed
forces and the police. Finally, considering single countries, we discover that United Kingdom is the only
European country with a clear and negative pattern for social capital: quite every proxy of social capital in
UK declined over the considered period
Jel Classification: D6 I31 O1
The author is really grateful to Stefano Bartolini and Ennio Bilancini for their precious comments and
advices on every step of present work. The usual disclaimers apply
Francesco Sarracino, Università di Firenze, e-mail: [email protected]
1
Introduction
Discovering whether social capital (SC) endowments in modern societies
have been subjected or not to a process of gradual erosion is one of the most
debated topics in recent economic literature. This new stream of research
has been inaugurated by Putnam’s pioneering studies about SC trends in
the United States. Considering numerous proxies of SC, Putnam (2000)
argues that during last thirty years USA experienced a decline in social relationships and in its system of shared values and beliefs. From this point,
much of the literature on SC tries to find evidence to support or to contend
this statement. For a comprehensive review of such literature see Stall and
Hooghe (2004). Putnam’s finding has been carefully scrutinised by Paxton
(1999), Robinson and Jackson (2001), Costa and Kahn (2003), and Bartolini,
Bilancini and Pugno (2008), while Ladd (1996) criticised this evidence. “On
balance, social capital has been confirmed as declining in the US, although
not so dramatically as Putnam claimed.”1 All these studies are focused
on the USA since similar research asks for a generous data-base and the US
General Social Survey (GSS) offers a long lasting temporal data-series. Consequently, we don’t have much informations about what happened in other
countries in the same period. For that reason the first question I would like
to give an answer is: how is doing Europe? is SC declining? is such erosion
a general trend of western societies or is it a characteristic feature of the
American one? To my knowledge only a few authors payed attention to this
aspect since only a few data-sets are useful to establish a clear long-term
pattern. In 2001 OECD2 dedicated to this topic a publication in which,
beyond others, dealt with the theme of trends in five European countries:
United Kingdom, Netherlands, Sweden, France and Germany. The report
assesses that in general SC declined, in particular in United Kingdom, while
remaining countries show a more mixed pattern.
Another general perspective is offered by Andrew Leigh (2003)3 . Contributing to an entry on “Trends in social capital” he identifies three common
patterns of declining trust, political participation and organizational activity
across industrialized countries in the period between 1980 and 1990. Among
the five reviewed European countries (Britain, France, Germany, Spain and
Sweden) only the Scandinavian one seems to have a positive trend even if
civic engagement is declining. Further studies have been conducted by Norris (2002), Delhey and Newton (2005) but these studies focused on particular
1
S. Bartolini, E. Bilancini, M. Pugno, Did the decline in social capital decrease American happiness? A relational explanation of the happiness paradox, Università degli Studi
di Siena - Quaderni del Dipartimento di Economia Politica, n.540, Agosto 2008, Siena.
2
OECD, The Well-being of Nations. The role if human and social capital, Centre for
Educational Research and Innovation, Paris, 2001
3
A. Leigh, Entry on “Trends in Social Capital”, prepared for Karen Christensen and
David Levinson (eds) (2003) Encyclopedia of Community: from the village to the virtual
world” Thousand Oaks, CA: Sage
1
indexes of SC or only on generalised trust and were based on old data from
the WVS. A deeper analysis was conducted by Morales (2004) on trends and
levels of associational participation in Europe. Looking at trends between
1980 and 2002 from the WVS and the European social survey (ESS) she
concludes that it is not possible to state whether a clear increase or decrease
in general levels of membership exists. Anyway, her analysis is merely descriptive and, even if she focuses on a broad set of countries, her conclusions
may be affected by sample bias. Finally, a more recent article by Frane
Adams (2006) observes trends of generalized trust and membership in voluntary organizations using data from WVS in the period 1980 - 2000. The
author finds evidence of a non eroding SC in Europe even if he warns about
signs of decline as well as improvement. He states that decline in trust in
individuals is quite visible, while associational involvement shows a more
complex but on average positive trend. Adam’s work is, to my knowledge,
the most up-to-date and complete research on European trends of SC. Anyway, it suffers some limitations. First of all it is based on mean variations
between the starting and ending period. This is quite comprehensible since
the second aim of the author was to test the reliability of the WVS vis-a-vis
other data-bases (i.e. ESS), but in general this approach does not allow
to check for other factors and sample bias; secondly the author adopts only
some of the available proxies of SC, namely generalized trust, membership in
voluntary organizations and unpaid voluntary work; finally, Adams focuses
on a large number of European countries including transition countries: this
is an interesting point, but misses to account for different economic realities
(developed and transition countries) preventing a more detailed knowledge
of what has happened to SC during last twenty years.
In order to overcome these limitations, my research considers three different set of proxies of SC controlling for time and socio-demographic aspects
in eleven different European countries. Data are drawn from the WVS, a
data-set composed of four waves between 1980 and 2000. In so doing, I am
able to investigate European trends on a twenty years period.
The second question I would like to answer is whether SC trend can help
to explain subjective well-being (SWB) trend. In a pioneering work Easterlin (1974) discovered that, using cross-section data, on average richer people
are also happier than poorer ones; but a life-cycle analysis on the same sample shows that during time income grew up while happiness stayed constant.
Such a puzzle is actually known as the “Easterlin paradox”. Starting from
this point an even more consistent part of the economic literature flourished
trying to solve the problem. Many different theories coming from manifold
scientific fields have been advanced so far, but until now they failed to fully
explain the paradox4 . Recently, Stevenson and Wolfers (2008) revive the
4
for a review of the main theories advanced so far please refer to F. Sarracino, Subjective
well-being in low income countries, Studi e Note di Economia, n. 3, 2008
2
debate challenging the existence of the paradox. Considering Europe and
Japan they argue that societies get happier as they become richer. That is
to say that “money can buy happiness”. Unfortunately, at the same time
they state that “the failure of happiness to rise in the United States remains
a puzzling outlier.”5 . In this way the Easterlin paradox remains unsolved
and also its non existence is not demonstrated. There is a need to further look into the “black box” of the American case. From this point of
view, some recent contributions by Helliwell (2003, 2006) propose SC as an
important aspect for SWB arguing that money can not explain the whole
variation in people well-being. To my knowledge, the paper tackling most
succesfully with the challenge settled by Helliwell is Bartolini, Bilancini and
Pugno (2008)6 which argues that SC, and in particular relational goods, is
important for SWB. They do not deny the importance of income for happiness, but using data from the American GSS between 1975 and 2004 they
find out that U.S. SWB is largely explained by four forces acting in different
directions: 1) income growth; 2) decreasing relational goods; 3) decreasing
confidence in institutions; 4) social comparisons. These four groups of variables allow to explain quite the whole variation in SWB. In other words, the
three authors suggests that American happiness did not grow up together
with economic growth because the positive effect of income growth was
counterbalanced by the declining availability of SC which negatively affects
SWB. In this way they provide a convincing and powerful explanation of the
Easterlin paradox giving SC a new role: a higher income increases happiness
as long as it does not undermine SC. Whenever this hypothesis would be
corroborated by further research, policy agendas will have to consider also
the effects of economic policy on the preservation and the provision of social
capital. Hence, SC can become an important aspect of future development
policies.
The theory proposed by Bartolini et al. (2008) can help to explain what
happened in U.S.A. A few example can probably be convincing. Estimates
from the three authors suggest that in presence of a stable endowment of
SC, and in particular of relational goods, American SWB would have been
higher than the actual one. Similarly, if income growth should compensate
for the effect of the reduction of SC on happiness, keeping this variable stable
to its 1975 levels, then the growth rate of GDP should have been more than
10%. Finally, they also estimate that the positive effect of income growth
on SWB has been counterbalanced by the increase of other’s people income
(which offsets 2/3 of the effect of income growth) and by the decrease in
relational goods and confidence in institutions (which accounts for 5/6 of
5
B. Stevenson and J. Wolfers, Economic growth and subjective well-being: reassessing
the Easterlin paradox, IZA DP n. 3654, August 2008, p. 16
6
S. Bartolini, E. Bilancini, M. Pugno, Did the decline in social capital decrease American happiness? A relational explanation of the happiness paradox, Università degli Studi
di Siena - Quaderni del Dipartimento di Economia Politica, n. 540, Agosto 2008, Siena.
3
the total effect of social comparisons on SWB).
Concluding, the contribution from Bartolini et al. (2008) seems to suggest
that differences in SC trends can help to explain differences in SWB trends.
The aim of this work is to provide further evidence to support this hypothesis
looking at European countries.
Main results of my research are the following:
1. SC trends in Continental Europe and Great Britain are different.
British trends are very similar to the American ones;
2. SWB trends in Europe are generally positive with the only exception
of Great Britain;
3. SC and SWB trends for Europe are compatible with a relational explanation of the Easterlin paradox.
Present work is structured in four sections: the first section outlined my
research questions and motivations behind them; the following section points
out data adopted for my research and methodological aspects; the third
section reports results from different regressions considering various proxies
of SC as dependent variable and adopting time dummies and socio-economic
conditions as indipendent variables. Finally, some concluding remarks will
follow.
2
Data and Methodology
The analysis of SC trends for different European countries asks for a generous data-set. From this point of view, probably, the most comprehensive
data-base is represented by the World Values Survey (WVS). It is a wide
compilation of surveys collected in more than 80 countries representing more
than 80% of the world’s population. It collects informations on sociocultural
and political change observed on a randomly selected sample of 300 to 4,000
individuals per country. In particular the database provides informations on
“individual beliefs about politics, the economy, religious, social and ethical
topics, personal finances, familial and social relationships, happiness and
life satisfaction”7 . Data have been collected in four waves (1980 - 82; 1990
- 91; 1995 - 97 and 1999 - 2001) for a total of 267,870 observations covering
quite a long period of time - about 20 years. Anyway, the sample available
for present study is smaller since I focus on the trend of SC indicators in a
small subset of available countries, namely: Italy, France, the Netherlands,
Belgium, United Kingdom, Ireland, Germany, Denmark, Sweden, Norway
and Finland.
7
Bruni L. and Stanca L., Watching alone: relational goods, television and happiness,
Journal of Economic Behaviour and Organization, 2006, p. 6
4
Although SC has been longly a much debated topic, actually it still
lacks a commonly agreed definition. This topic has been developed and
applied in many different social disciplines then different definitions have
been advanced so far. Some of the fathers of this concept propose different
definitions for it, but given the empirical nature of present work, I opted for
the definition proposed by Bartolini et al. (2008) who define SC as “the stock
of both non-market relations and beliefs concerning institutions that affect
either utility or production functions.”8 . In this way the authors do not focus
solely on particular aspects of SC - networks, norms and trust - but comprise
all those aspects - material and immaterial - that can contribute to develop
mutual trust and co-operation. In particular, they point to two main aspects
of SC: 1) every non-market relationships among individuals which allow
people to communicate each other and to develop mutual trust. They define
this aspect relational SC; 2) the system of values or believes that makes
people act coherently. Moreover, the authors propose a further distinction in
intrinsically and extrinsically motivated relational SC depending on whether
the incentives to act come from within or outside the individual. They define
intrinsic SC (alternatively defined as relational goods) those components
“that enter into people’s utility function”9 ; by extrinsic SC they mean those
components that do not “directly enter into people’s utility functions but
are instrumental to something else that may be considered valuable”10 . This
distinction allows to go deeper in the analysis of the category of relational
SC. In fact, quoting Deci’s work (1971), they focus on the non-instrumental
nature of intrinsic motivated activities. This peculiarity allows to focus on
a broader point: non-market relations are not always intrinsic; there can be
extrinsic relational SC (or purely extrinsic) as well as intrinsic one.11
A further critical aspect about SC is how to measure it. Different proposals have been advanced, but generally there are some agreed proxies of SC.
For example, following Putnam (2000) main measures of SC centre around
proxies of trust and levels of engagement or interaction in social or group
activities. When trying to measure SC we should keep in mind particular
aspects (OECD, 2001):
• we should pay attention to causal connections since sources, functions
and outcomes may be confused;
8
S. Bartolini, E. Bilancini, M. Pugno, Did the decline in social capital decrease American happiness? A relational explanation of the happiness paradox, Università degli Studi
di Siena - Quaderni del Dipartimento di Economia Politica, n. 540, Agosto 2008, Siena,
p. 5
9
S. Bartolini, E. Bilancini, M. Pugno, Did the decline in social capital decrease American happiness? A relational explanation of the happiness paradox, Università degli Studi
di Siena - Quaderni del Dipartimento di Economia Politica, n. 540, Agosto 2008, Siena,
pp. 5 - 6.
10
S. Bartolini, E. Bilancini, M. Pugno, ibidem, pp. 5 - 6.
11
please refer to tab.1 in the appendix for a summarizing scheme.
5
• SC is mainly characterized by tacit and relational aspects which are
naturally difficult to observe, to measure and to codify;
• usual variables of SC (trust, membership, voting, etc.) provide proxy
measures and should not be confused with the underlying concept.
According to the vast majority of the literature on SC (Paxton, 2004;
Costa and Kahn (2003)), I observe the beliefs component through several reports of confidence in institutions, namely armed forces, police, parliament,
civil services, press, ecclesiastic, judicial system, education system, labour
unions and major companies. Answers to these questions range on a 1 to 4
point scale going from none at all to a great deal. To measure non-market
relations, I use trust in individuals (represented by a dummy variable) and
membership in various voluntary groups and organizations. Given the multiple nature of this third aspect, I adopt the mentioned distinction between
intrinsically and extrinsically motivated group membership (Bartolini et al.,
2008). Voluntary organizations which enters the first set are labelled Putnam’s groups while those entering the second set are named Olson’s group
(Knack, 2003). This distinction is based on the works of the two authors:
Olson12 emphasizes the tendency of associations to act as lobbies to get policies that protect the interest of special groups at the expenses of the society
as a whole. Consequently, I include in Olson’s groups all those organizations
which are extrinsically motivated since it is supposed they are experienced
only for instrumental reasons. On the contrary, Putnam13 identifies in associations a source of general trust and of social ties leading to governmental
and economic efficiency (Bartolini et al., 2008). In this paper membership in
a Putnam’s group is interpreted as intrinsic SC supposing it is experienced
only for the pleasure of being a member. Among Putnam’s group I include
social welfare service for elderly, church organizations, sport clubs, art and
literature clubs, fraternal groups and youth associations, human and animal rights. Among Olson’s groups I include fraternity associations, unions,
professional organizations and farm organizations, organization concerned
with health and consumer groups. Finally, there are some groups that were
left unclassified and labeled as other groups because it is not clear whether
they constitute intrinsic or extrinsic RSC, althought they are part of RSC.
In this latter group I included veterans associations, political parties and
“other groups”. Each option between these three groups of variables is expressed as a dummy variable.
Finally, SWB is proxied by the variable happiness that is measured on a
scale ranging from 1 to 4 and is based on answers to the following question:
12
Olson M., The rise and decline of nations: economic growth, stagflation and social
rigidities, Yale UP: New Haven, 1982
13
Putnam R.D., Making democracy work: civic traditions in modern Italy, Princeton
NJ, Princeton University Press, 1993.
6
“All considered you would say that you are: 1. very happy; 2. pretty happy;
3. not too happy; 4. not at all happy?”.
In order to study SC and SWB trends during the last 20 years for each of
the considered European countries, I follow two approaches14 : I first regress
the proxies of SC and SWB on time dummy variables. In this way trends are
based on mean values; than I regress the same proxies on different groups
of control variables (age, gender, familiar status and education) to consider
specific individual and social aspects. In particular, age is considered linearly
and with its square; a dummy on male is introduced; familiar status is
controlled through three proxies: the number of children, a variable ranging
between zero and twenty, and two dummy variables for single and married;
finally, education includes a dummy for illiterate.
This model is repeated for each considered country. Formally, I estimate
the following:
j
= α + β1 · Di,w2 + β2 · Di,w3 + β3 · Di,w4 + γ1 · Ageit + γ2 · Age2it +
P roxyit
γ3 · M alei + υ1 · N Childit + υ2 · Singleit + υ3 · M arriedit + δ1 · Illiterateit
(1)
where index j stands for the different proxies of SC and SWB, index t
represents the various waves and index i stands for each individual. In each
equation three dummy variables have been introduced to account for the
four waves. Where possible I kept the first wave as the reference period.
When informations about the first waves where not available, I adopted the
second wave as reference period.
Since I have different indicators of SC and one proxy of SWB, my regression methodology varies following the specifities of each depending variable:
in the case of generalized trust and participation in voluntary organizations,
that are expressed in the form of dummies, I adopted a logit model; when
studying confidence in institutions or happiness, defined on a 1 to 4 scale,
I used an ordered logit model. Tables from 2 to 12 in the appendix report
summary statistics for each considered country.
When dealing with these data we have to be careful because, although
the WVS is the most complete database on our topic, it has some deficiencies. In particular, we have to keep in mind that observations about Italy,
Ireland, Denmark, France, The Netherlands and Belgium are missing in the
third wave; similarly, data about Finland are not collected in the first wave,
while Norway is not observed in the fourth wave. Finally, the third wave
does not contain informations about trust in the United Kingdom and about
confidence in the educational system in Sweden, Norway, Finland and Germany. Overall, the pooled dataset contains 48340 observations.
14
M. Aguiar and E. Hurst, Measuring trends in leisure: the allocation of time over five
decades, Federal Reserve Bank of Boston, Working Papers n. 2, 2006
7
3
Results
3.1
Social capital trends in Europe
I report and discuss results from several regressions relative to equation 1.
Results about each regression are reported in the appendix from tab.13 to
tab.23. Here I discuss directly my conclusive results which are summerized
in charts in the appendix.
A first interesting aspect emerging from my regressions is that SC trend
in Europe is mainly positive. Hence, the picture about Europe appears
fundamentally different from the American one. There is only one European
country representing a shocking exception: the Great Britain. In this case
every considered proxy of SC is declining meaning that during last twenty
years Great Britain experienced a substantial erosion of SC. Charts from
fig.1 to fig.7 show clearly this result. On the x-axis I reported the time from
1980 to 2000. Each point on the x-axis corresponds to a wave in the WVS.
On the y-axis I report coefficients of the time dummies originating from
regressions. The point on the x-axis corresponding to zero represents the
reference year, while other points in the charts defining trends corresponds to
the coefficients of the time dummies. Finally, each chart reports more than
one line. Each line represents results from regressions with different sets of
control variables, coherently with the adopted model. Looking at the charts
it emerges clearly that Great Britain experienced a general social crisis.
Relational SC, represented by trust in others and membership in Putnam’s
groups, decreases strongly during all the period. Similarly, also every proxy
of beliefs in institutions declines steadily all along the last twenty years.
The only proxy reporting a positive trend is membership in other groups,
but data are insufficient to draw a trend for all the considered period.
The picture is completely different if we consider remaining European
countries. In particular, trends about relational goods are generally positive.
Here I will discuss only results for some of the major European countries.
Considering membership in Putnam’s groups, charts from fig.8(a) to fig.10(a)
suggest that Italy, the Netherlands and Sweden from 1980 to 2000 experienced a growing trend. Figure 11(a) and fig.12(a) show that the same trend
is positive also in France and in Denmark, even if in these two cases relative
growth rate reduces since 1995. Considering Norway, fig.13(a) suggests a
positive trend, but in this case available data do not allow to set a clear
pattern. I can only conclude that in this case the trend between 1980 and
1990 is positive. Finally, the chart about Germany15 (fig.14(a)) points out
that overall from 1980 to 2000 membership in Putnam’s groups is positive,
15
Observations about Germany before 1989 refer to West Germany.
8
but I have to remark that the trend reverted since 1990.
Considering the other component of relational goods, that is to say trust
in others, the picture emerging from regressions is more homogeneous, since
it grows up in every of the mentioned countries. I have only to highlight two
cases: 1) Italy, in which the overall trend is positive although the growth
rate of trust in other’s slightly reduces starting from 1990; 2) France, which
emerges as the only Continental European country with a decreasing trend
of trust in others during last twenty years (please, consider (b) charts from
fig.8 to fig.14.
Let’s turn now to the second component of SC: beliefs in institutions.
In this case trends are more mixed among both variables and countries. In
any case, some general trends arise quite clearly indicating a worrying trend
for confidence in particular institutions: in particular, it seems that during
last twenty years European citizens have persistently lost confidence in the
judicial system, in religious institutions, in armed forces and in police.
Summing up, althought some specificities and a mixed pattern regarding confidence in institutions, results suggest that SC, and in particular
relational goods, generally increased during the last twenty years for the
considered European countries, while Great Britain comes out as the big
European exception showing a very similar pattern to the American one.
3.2
Social capital and subjective well-being in Europe
Previous results conveyed a framework in which Europe appears as very different from the USA. For quite every considered country, with the exception
of Great Britain, relational SC increased from 1980 to 2000. Regressions
about the trend of SWB in the same countries confirm a similar pattern. In
fact, SWB increases in every considered country, while Great Britain is once
again the only exception with a strongly decreasing trend from 1980 to 1995.
Unfortunately, data about the fourth wave are not available in this case (see
fig.15 to fig.19 in the appendix). Charts about remaining European countries show an overall positive pattern, even if single trends may differ. For
example, France, Norway, Denmark and Netherlands have a steady growing
trend (see fig.17(b), fig.18(a) and (b), and fig.16(b)); trends for Germany
and Italy are positive too, but the growth rate reduces signifcantly between
1990 and 2000 (see fig.16(a) and fig.19 in the appendix); finally, Sweden’s
trend has a U-shaped outline (see fig.17(a)), even if the net result is positive.
4
Conclusions
The aim of present study was to point out trends of social capital in Europe
and finding evidence to support the thesis that SC trends can help to explain
SWB trends. In this way SC gains a new dimension: it can give further
meaning to the widely used term well-being. Whenever present thesis would
9
be corroborated by further research, SC would acquire a central role in
the definition of our policy agenda. For example, future economic policies
should not only focus on ways to promote economic growth, but should pay
attention also to their effects on SC.
Using different regression techniques, following the nature of dependent
variables, I tried to assess the trends of three proxies of SC for each country in
the period between 1980 and 2000. Following a broadly accepted approach
in the literature, I adopted the following variables: trust in individuals,
membership in eighteen different voluntary organizations and confidence in
ten institutions. Results are quite innovative for at least two reasons: 1)
contemporary literature largely focused on trends in USA rather than in
Europe. This is mainly due to the fact that USA have large data-bases
allowing such studies for longer periods of time (for example the U.S. GSS);
2) following the debate on the Easterlin paradox, my results suggest that
we can not discard the hypothesis that the trend of SC is important for the
trend of SWB. From this point of view, it is important to stress that I am not
performing a causal analysis, but I am simply assessing SC and SWB trends
and notice that in 10 out of 11 countries signs of SC trends are concordant
with signs of SWB trends. Whether such evidence would be substantiated
by future research, we could say that U.S.A. do not represent a “puzzling
outlier” since “income growth is desirable as far as it is not associated with
a deterioration of SC.”16 Nonetheless, the question about whether SC trend
can help to explain SWB trend is still an open question asking for further
and deeper research.
Summarizing, my findings are the following:
1. Trends for SC in Europe are mainly positive (in particular for relational goods);
2. Great Britain appears as the only exception with declining trends of
SC;
3. Europe seems affected by a general crisis of some particular institutions;
4. Given the concordance between SC and SWB trends in 10 out of 11
cases, we can not reject the hypothesis that SC can help to explain
SWB.
Concluding, present research allows to remark a few aspects: the first one
is that Europe and USA are not exactly following the same pattern. While
both regions have experienced an institutional crisis during last twenty years,
16
S. Bartolini, E. Bilancini, M. Pugno, Did the decline in social capital decrease American happiness? A relational explanation of the happiness paradox, Università degli Studi
di Siena - Quaderni del Dipartimento di Economia Politica, n. 540, Siena, Agosto 2008,
p. 26.
10
relational social capital in Europe increased. The only European country
with negative trends is the Great Britain. Nonetheless, we should take
in mind that these figures need further investigation to extend both the
number of interested countries and the lenght of the period considered. By
now, present results suggesting a quite different pattern between USA and
Europe push future research in two main directions: 1) to enlarge present
research to discover trends relative to other countries; 2) to investigate why
USA and Europe have a different performance. Which forces have pushed
toward an increasing erosion of social capital in USA? Is European social
capital subjected to the same erosive forces? 3) Do SC trends explain SWB
trends in Europe?
11
Appendix: tables
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Table 1: Summarizing scheme of the different constituents of social capital.
Source: author’s own elaboration
12
M
F
F
J
F
M
9
K
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M
M
I
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B
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9
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9
F
G
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M
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B
B
F
M
L
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K
K
H
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L
K
J
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M
M
M
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G
M
F
M
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N
K
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K
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9
9
F
N
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K
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F
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J
H
M
F
J
B
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M
G
F
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l
Table 2: Descriptive statistics about Italy.
Source: author’s own elaboration of World Values Survey data
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Table 3: Descriptive statistics about Great Britain.
Source: author’s own elaboration of World Values Survey data
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15
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²
Table 4: Descriptive statistics about Ireland.
Source: author’s own elaboration of World Values Survey data
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Table 5: Descriptive statistics about France.
Source: author’s own elaboration of World Values Survey data
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Table 6: Descriptive statistics about Germany.
Source: author’s own elaboration of World Values Survey data
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Table 7: Descriptive statistics about Netherlands.
Source: author’s own elaboration of World Values Survey data
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½
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19
»
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°
Å
°
Á
°
à
Þ
Ü
Table 8: Descriptive statistics about Belgium.
Source: author’s own elaboration of World Values Survey data
ü
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20
ú
ó
ï
Table 9: Descriptive statistics about Denmark.
Source: author’s own elaboration of World Values Survey data
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2
1
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1
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1
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1
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R
1
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9
=
21
=
A
.
B
.
?
.
Table 10: Descriptive statistics about Norway.
Source: author’s own elaboration of World Values Survey data
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Table 11: Descriptive statistics about Sweden.
Source: author’s own elaboration of World Values Survey data
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Table 12: Descriptive statistics about Finland.
Source: author’s own elaboration of World Values Survey data
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Table 13: Logit regression about the trends of relational goods in Italy.
Source: author’s own elaboration of World Values Survey data
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D
D
C
=
@
6
6
;
<
<
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D
D
D
C
=
5
;
;
;
<
<
B
7
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?
A
A
;
Ͳ
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6
6
7
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B
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:
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5
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7
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6
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:
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7
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;
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8
6
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6
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5
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7
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B
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5
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A
8
5
;
;
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;
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6
6
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A
;
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D
D
C
6
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5
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5
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D
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8
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;
8
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6
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8
6
6
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6
5
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6
5
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5
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$
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-
0
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0
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8
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8
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8
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5
5
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G
2
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3
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5
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6
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6
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9
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5
6
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8
5
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B
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8
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<
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=
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D
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A
$
(
'
2
2
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D
D
D
>
7
;
;
5
6
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@
8
=
;
;
;
;
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5
5
@
<
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=
6
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3
%
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(.
%
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<
<
<
F
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8
>
7
;
;
5
8
5
6
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5
;
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6
'
3
$
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H
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;
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7
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;
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3
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2
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+
R
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5
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>
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7
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%
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F
.
(
'
D
'
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$
%
%
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M
J
'
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'
-
K
J
)
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%
%
$
:
(
/
"
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U
-
%
0-
L
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W
%
.
/
Ͳ
S
7
<
#
F
$
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(
F-
$
-
G
)
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8
2
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2
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(/
'
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J
1
$
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-
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J
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T
S
5
#
V
S
6
25
4
,
3
1
,
2
1
,
)
'
'
&
!
Table 14: Logit regression about the trends of relational goods in Great
Britain.
Source: author’s own elaboration of World Values Survey data
w
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26
Table 15: Logit regression about the trends of relational goods in Ireland.
Source: author’s own elaboration of World Values Survey data
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“
Table 16: Logit regression about the27
trends of relational goods in France.
Source: author’s own elaboration of World Values Survey data
wave 2
Putnam's group
Olson's group
Other's group
Trust
1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
0.769***
0.764***
0.677***
0.676***
1.205***
1.222***
1.295***
1.282***
0.860***
0.853***
1.030***
1.037***
-0.122**
-0.130**
-0.127**
-0.133**
[0.0502]
[0.0503]
[0.0530]
[0.0532]
[0.0581]
[0.0592]
[0.0639]
[0.0640]
[0.0667]
[0.0668]
[0.0738]
[0.0743]
[0.0549]
[0.0550]
[0.0579]
[0.0580]
-0.105*
-0.126**
-0.131**
-0.123*
[0.0612]
[0.0616]
[0.0642]
[0.0644]
wave 3
age
age2
male
0.0257***
0.0185*
0.0185*
0.105***
0.0742***
0.0741***
0.00685
0.0305**
0.0308**
-0.00121
0.0159
0.0156
[0.00803]
[0.00991]
[0.00990]
[0.0101]
[0.0126]
[0.0126]
[0.0105]
[0.0129]
[0.0129]
[0.00797]
[0.00966]
[0.00968]
-0.0003***
-0.0002**
-0.0002**
-0.001***
-0.0009***
-0.0009***
-0.0001
-0.0003**
-0.003**
-0.0001
-0.0002
-0.0002**
[8.31e-05]
[9.76e-05]
[9.76e-05]
[0.000108]
[0.000126]
[0.000126]
[0.000107]
[0.000129]
[0.000128]
[8.26e-05]
[9.63e-05]
[9.65e-05]
0.168***
0.177***
0.177***
0.749***
0.744***
0.746***
0.193***
0.0832
0.0829
0.0772
0.0455
0.0441
[0.0504]
[0.0528]
[0.0528]
[0.0575]
[0.0605]
[0.0605]
[0.0645]
[0.0688]
[0.0687]
[0.0480]
[0.0504]
[0.0504]
0.0363
0.0363
0.016
0.017
0.118***
0.117***
-0.0109
-0.0115
n. of children
28
Table 17: Logit regression about the trends of relational goods in Germany.
Source: author’s own elaboration of World Values Survey data
Germany
single
married
[0.0246]
[0.0246]
[0.0280]
[0.0280]
[0.0295]
[0.0294]
[0.0215]
[0.0215]
0.424***
0.424***
-0.281**
-0.284**
0.420***
0.422***
0.351***
0.347***
[0.100]
[0.100]
[0.121]
[0.121]
[0.130]
[0.130]
[0.0907]
[0.0907]
0.131*
0.130*
0.204**
0.199**
0.178*
0.181*
0.0862
0.0823
[0.0691]
[0.0692]
[0.0805]
[0.0807]
[0.0923]
[0.0924]
[0.0648]
[0.0648]
illiterate
Constant
-0.0555
-1.906*
0.442
[0.350]
[1.028]
[0.436]
-0.522**
[0.245]
-0.702***
-1.289***
-1.243***
-1.241***
-1.613***
-4.022***
-3.451***
-3.435***
-2.006***
-2.190***
-3.259***
-3.272***
-0.591***
-0.411**
-0.958***
-0.948***
[0.0368]
[0.178]
[0.238]
[0.238]
[0.0465]
[0.225]
[0.299]
[0.299]
[0.0535]
[0.237]
[0.313]
[0.314]
[0.0380]
[0.177]
[0.231]
[0.231]
Observations
6778
6775
6230
6230
6778
6775
6230
6230
6778
6775
6230
6230
7870
7861
7408
7408
Wald chi2
235.1
255.3
207.7
207.6
430
724.6
701.5
696.8
166.1
181
217.4
217.2
5.639
37.74
46.37
50.7
Pseudo R2
0.026
0.0285
0.0252
0.0252
0.0573
0.0985
0.105
0.106
0.0274
0.0291
0.0394
0.0396
0.000558
0.00382
0.00499
0.00551
Prob > chi2
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
log
pseudolikelihoo
d
-4502
-4489
-4170
-4170
-3814
-3647
-3366
-3363
-3115
-3109
-2826
-2826
-5045
-5022
-4717
-4715
Robust z-statistics in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%
1) Mean values
2) Demographic controls
3) Familiar status
4) Education
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Table 18: Logit regression about the trends of relational goods in Netherlands.
Source: author’s own elaboration of World Values Survey data
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Source: author’s own elaboration of World Values Survey data
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Table 20: Logit regression about the trends of relational goods in Denmark.
Source: author’s own elaboration of World Values Survey data
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Table 21: Logit regression about the trends of relational goods in Norway.
Source: author’s own elaboration of World Values Survey data
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Table 22: Logit regression about the trends of relational goods in Sweden.
Source: author’s own elaboration of World Values Survey data
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Source: author’s elaboration of World Values Survey data
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Source: author’s elaboration of World Values Survey data
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1980 to 2000. a Confidence in press; b Confidence in educational system.
Source: author’s elaboration of World Values Survey data
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Source: author’s elaboration of World Values Survey data
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Source: author’s elaboration of World Values Survey data
39
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Source: author’s elaboration of World Values Survey data
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Source: author’s elaboration of World Values Survey data
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