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Income, Wealth, and Socialization in Argentina: Provocative Responses from Individuals (2002)
BibTeX
@MISC{Lederman02income,wealth,,
author = {Daniel Lederman},
title = {Income, Wealth, and Socialization in Argentina: Provocative Responses from Individuals},
year = {2002}
}
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Abstract
This study has two objectives: (1) to establish a baseline measurement of "social capital" in Argentina; and (2) to identify its empirical determinants. The survey questionnaire designed for this study provides individual- level data about the population's participation in social organizations and its willingness to trust members of their community. Probit models are estimated to explain the individual's decision to participate and to trust strangers, where individual- household and community characteristics are used as explanatory variables. Potential simultaneity and endogeneity problems afflicting the empirical models are examined. The main determinants of the probability of participation in Argentina are age, age squared, household income (and perhaps income squared), rural communities (perhaps due to lower probabilities of migration among rural residents, since most migrants live in urban centers), perhaps community or provincial unemployment rates, and the individual's trust itself. In contrast, the main determinants of trust are age and age squared, but with the opposite signs to those exhibited by probability of participation, household wealth (but not its squared term nor household income), participation itself (as demonstrated by the SUR Probit results concerning the cross-correlation between the two social capital models), and especially the community or provincial unemployment rates and income inequality. It is also noteworthy that the common question on trust used in the U.S. General Social Survey and in the World Values Survey yields results where communities with higher "trust" rates actually have lower social participation rates. Finally, participation in organizations with participatory leadership selection mechanisms are more likely to produce interper...
Keyphrases
provocative response provincial unemployment rate main determinant household income social capital household wealth u.s. general social survey income inequality participatory leadership selection mechanism explanatory variable squared term endogeneity problem baseline measurement empirical determinant sur probit result rural community trust rate world value survey yield result rural resident common question empirical model social participation rate community characteristic social capital model individual level data survey questionnaire probit model opposite sign potential simultaneity urban center individual household social organization
