Banking on Families: How Families Generate and Distribute Social Capital

Before we can determine the relevance of social capital to the sociology of family and kinship, we must fill the gaps in our theoretical knowledge. For example, we still do not know how couples, parents, children, and groups generate, accumulate, manage, and deploy social capital. Neither do we know the consequences of social capital for the welfare of families and their individual members. To investigate these areas, we must replace the makeshift measures currently in use with measures that do not confuse social capital with the presumed consequences of access to same. With this attention to theoretical elaboration and careful measurement, we will discover whether the idea of social capital is fruitful or merely decorative.     

Religion and social capital: evidence from European countries

This exploratory study investigates how various aspects related to religion are related to different dimensions of social capital, based on the latest data from the European Values Study. The study intends to include as many religion-related variables as possible and to cover all main dimensions of social capital. In addition to regression analysis, cluster analysis is used for further exploration of religious composition and its consequences for social capital. The broadest conclusions are that religion is highly related to social capital, but the cognitive dimensions of social capital seem to have a closer relationship with social capital than the structural dimensions. Also, many relationships may be overlooked if not enough different religion-related aspects and social capital dimensions are analysed.     

Finance capital markets and corporate decision-making processes: The case of W. T. Grant Company's bankruptcy

The effect of capital markets on corporate decision making has been a focus of scholarly attention for more than a century. The existing literature has remained sparse, however, in detailed analyses of the processes and effects of organized finance capital markets on managerial discretion. The case of W. T. Grant Company's bankruptcy illustrates the mechanisms by which the banking community's organized control of the finance capital markets posed a constraining influence on the firm's decision-making processes. This influence extended to the decision to throw the company into involuntary bankruptcy. The case also illustrates finance capital to be both a unique resource (having no alternatives) and a special relationship that, unlike material capital supplier relationships, has long-term consequences for the borrowing firm.     

The Mitigating Effects of Social and Financial Capital Resources on Hardships

Social and financial capital resources contribute significantly to socioeconomic outcomes. However, insufficient attention has been given to how these resources may mitigate potential socioeconomic setbacks and differ for gender and class groups. In our study, most of the interviewees with hardships had access to social and financial capital resources. The few with insufficient access were working class. Women accessed financial capital resources to overcome hardships more than men, whereas men were more likely to use social capital resources. Access to the resources helped ensure that almost all of the individuals in this study did not suffer the full consequences of their hardships. The hardship itself was of less importance than having access to social and financial capital resources.     

Facilitating achievement by social capital in Japan

Social capital, as a comprehensive concept, comprises structural components representing social networks and functional components, which register past and future help, reciprocity, and trust. One assumption is that these various components interact and reinforce one another to enhance an individual's expected achievement. To validate the conceptualization and examine the consequences of social capital, the present study analyzed a set of data collected from 201 residents based in Japan. The results demonstrated that conceptualization proves to be valid in view of its adequacy in internal consistency and stability in the confirmatory factor model. The structural equation modeling likewise revealed contributions of the social capital components both individually and interactively. Notably, the Japanese respondents expected greater achievement with higher levels of both structural social capital and anticipatory functional social capital, which consequently tapped expected help, trust, and reciprocity. Structural social capital appeared to be a basis for functional social capital.     

Expectations, Capital Gains, and Income

A theoretical framework for the measurement of income under uncertainty is developed that addresses some long-standing controversies about the treatment of capital gains. The consequences for economic analysis and policy making are potentially serious, because the treatment of capital gains can significantly affect some major macroeconomic aggregates, including national income and savings, balance of payments deficits, government deficits, and depreciation. (JEL O47 , P44 , Q32 )     

Embeddedness and capital markets: Bank financing of businesses

The article examines the social and economic dimensions of capital markets, particularly the effects of bank and capital market structure; lending criteria and bank policies; and demand for credit, on bank financing of businesses. A critical problem in most capital markets is that lenders have inadequate information to assess the risk and creditworthiness of loan applicants. We find that many bankers continue to use assessments of character as a signal of the potential borrower's creditworthiness. Banking deregulation limits the range of signals available to lenders and therefore may have detrimental consequences for banks and local economies.     

EVALUATING CHANGES IN THE DISTRIBUTION OF CAPITAL WEALTH

A small-scale general equilibrium model in which the distribution of capital wealth is a key parameter is employed to examine the potential economic consequences of greater capital wealth equality. Every performance indicator examined – aggregate income, consumption equality, social welfare in the sum-of-utilities sense, and aggregate saving –is improved by greater capital wealth equality. However, the bottom-line social welfare gain, relative to the present high-inequality situation – even from the maximum achievable level of complete equality in capital wealth distribution – would be numerically rather modest.     

Social Stigma, Social Capital Reconstruction and Rural Migrants in Urban China: A Population Health Perspective

In this study, we examine migrant stigma and its effect on social capital reconstruction among rural migrants who possess legal rural residence but live and work in urban China. After a review of the concepts of stigma and social capital, we report data collected through in-depth interviews with 40 rural migrant workers and 38 urban residents recruited from Beijing, China. Findings from this study indicate that social stigma against rural migrants is common in urban China and is reinforced through media, social institutions and their representatives, and day-to-day interactions. As an important part of discrimination, stigma against migrant workers creates inequality, undermines trust, and reduces opportunities for interpersonal interactions between migrants and urban residents. Through these social processes, social stigma interferes with the reconstruction of social capital (including bonding, bridging and linking social capital) for individual rural migrants as well as for their communities. The interaction between stigma and social capital reconstruction may present as a mechanism by which migration leads to negative health consequences. Results from this study underscore the need for taking measures against migrant stigma and alternatively work toward social capital reconstruction for health promotion and disease prevention among this population.     

THE CONSEQUENCES OF COSTLY DEFAULT

This paper investigates the consequences of assuming that default on loans or corporate debt is costly; that is, the act of default imposes a deadweight cost on the economy. The analysis deals with two simple capital market models. Conditions for capital market equilibrium nominal interest rates and probability of default to exist are given and the comparative statics of these equilibrium variables with respect to changes in expectations, productivity of investment, cost of default and riskless interest rates are examined. In many cases these comparative static results are unambiguous in sign.     

Open adoption,human capital formation,and uncertainty

A model of child human capital formation is outlined, which is used to assess the consequences of uncertainty experienced by adoptive parents related to practices of openness in adoption. The model predicts that uncertainty in the adoption environment may lead to lower levels of human capital investments in adopted children. Empirical evidence indicates that uncertainty represented by fear of not bonding with the adopted child is the most important predictor of resistance to open adoption. His research interests include labor market mobility and human capital formation in the household. He received his Ph.D. from the University of Utah in 1989.     

Social capital and household income distributions in the United States: 1980, 1990

This paper asked if changes in social capital influence the level and disparity of household income in the United States. Social capital is defined in this paper as one's sympathy (antipathy) for others and one's idealized self. Changes in social capital are expected to produce the following economic consequences. First, increases in social capital are expected to alter the terms of trade and to increase the likelihood of trades between friends and family. Second, increases in social capital are expected to increase an economic agent's concerns for the external consequences of his or her choices, internalizing what otherwise would be considered externalities. Third, increases in social capital between firms are expected to increase the likelihood that they will act in their collective interest. Fourth, increases in social capital are expected to increase the opportunities for specialization and the likelihood of trade. Finally, increases in social capital are expected to raise the average level of income and reduce the disparity of income.This paper empirically tested the relationship between changes in social capital indicator variables and changes in the average and coefficient of variation (CVs) of household income. State CVs and averages of household income were calculated for all 50 states and for different races/ethnic groups using the U.S. Census data for 1980 and 1990. Social capital indicator variables selected to measure changes in social capital included measures of family integrity including the percentages of households headed by a single female with children; educational achievement variables including high school graduation rates; crime rate variables including litigation rates; and labor force participation rates. The social capital indicator variables appeared to be significantly correlated with each other. However, in 1980, the percentages of households headed by a single female with children was not significantly related to the birth rates of single teens. By 1990, however, a strong correlation was found between the percentages of households headed by a single female with children and the birth rate of single teens.Income inequality among U.S. households measured using CVs increased between 1980 and 1990 in all 50 states. The largest increase in CVs was among white households. The smallest increase in CVs was among Asian households. The states with the largest increase in the ratio of 1990 and 1980 CVs were Arizona, Wyoming, Maine, Vermont, and Texas. Half of the states reported decreases in real household income between 1980 and 1990. Those states with the largest percentage decrease in real income were Wyoming, Alaska, Montana, Louisiana, and West Virginia. The largest percentage increase in real income was reported by Connecticut, New Jersey, Rhode Island, and Massachusetts.State CVs and averages of household income were regressed on four factors or subsets of social capital indicator variables. The four factors used to predict CVs and averages of household income were generally statistically significant. The findings of this report support the conclusion that changes in social capital have a significant effect on the disparity and level of household income.     

Community and Social Capital: What Is the Difference?

The ideas of community and social capital have received much attention in the last decade, but are plagued by a multitude of conceptualizations, definitions, and operationalizations. This confusion is problematic for both researchers and policymakers trying to use these concepts. While numerous efforts have been made to clarify "social capital" and "community," too often the two are simply conflated. This paper attempts to distinguish between them by looking at the various ways they are related in concrete examples. Drawn largely from the literature, five examples are offered that together describe the complex interactions of place-based communities and social capital networks. These examples also demonstrate distinctions between community and social capital with regard to boundaries, the qualities of social relations and trust in each, instrumentality, the consequences of one for the other, and issues related to multiple communities in a single place. It is hoped that these distinctions will inform the ongoing efforts to develop unique and useful conceptualizations of these two terms.     

Community Connections: Social Capital and Community Success1

This article examines the impact of two types of community social capital—ties between civic organizations formed through shared members and ties between residents formed through socializing in local gathering places—on residents’ subjective appraisals of community success. Community social capital studies tend to focus on the first of these types of ties, networks of civic engagement, while the second, gathering place networks, has received relatively little scholarly attention. Studying both allows me to assess the formal and informal arenas of community sociability, providing a more thorough understanding of social capital and community life. I assess the effects of community‐level social capital networks on the individual‐level experience of residing in the community using survey data on 9,962 residents from 99 small towns in Iowa. This rich data set allows me to avoid two shortcomings common in social capital research: I construct genuine network measures of social capital (rather than infer network structure from community attributes) and conduct multi‐level analyses (rather than rely on disaggregation). My findings indicate both types of social capital are positively and significantly associated with resident ratings of community success, suggesting community networks—in both the formal and informal sectors—have important consequences for small towns and their residents.     

Sustainability when capital management has stochastic consequences

Sustainability is usually defined as a requirement of each generation to manage its stocks of man-made and natural capital such that the utility that it ensures itself can be shared by all future generations. Here we extend this definition to the case where capital management does not have deterministic consequences. A characterization is offered where the sustainability of one generation's behavior can be determined by comparing its utility with the utility of the succeeding generation, provided that the latter behaves in a sustainable manner. The properties of the definition are investigated and illustrated. Received: 26 April 1994/Accepted: 15 April 2002     

The fiscal and human costs of immigrant detention and deportation in the United States

An extensive body of literature has analyzed the individual impacts and collateral consequences of mass incarceration. However, few studies explore the consequences of a parallel and overlapping system: mass immigration detention and deportation. The last 30 years witnessed a dramatic increase in the number of noncitizens detained in and deported from the United States. Individuals detained under immigration laws are held pending adjudication, often mandatorily, and without many basic constitutional protections. Immigrant detention and deportation impose severe burdens on immigrants and their households and levy significant costs to society—financially, as well as in terms of social capital and community well‐being. Chiefly due to the difficulty in accessing noncitizens in the process of detention and deportation, this system has largely escaped sociological inquiry. This article provides a background for understanding the growth and consequences of detention and deportation in the United States. It reviews the literature on these immigration law enforcement programs and suggests topical and methodological directions for future research.     

Social exclusion and social capital: A comparison and critique

Social exclusion and social capital are widely used concepts with multiple and ambiguous definitions. Their meanings and indicators partially overlap, and thus they are sometimes used interchangeably to refer to the inter-relations of economy and society. Both ideas could benefit from further specification and differentiation. The causes of social exclusion and the consequences of social capital have received the fullest elaboration, to the relative neglect of the outcomes of social exclusion and the genesis of social capital. This article identifies the similarities and differences between social exclusion and social capital. We compare the intellectual histories and theoretical orientations of each term, their empirical manifestations and their place in public policy. The article then moves on to elucidate further each set of ideas. A central argument is that the conflation of these notions partly emerges from a shared theoretical tradition, but also from insufficient theorizing of the processes in which each phenomenon is implicated. A number of suggestions are made for sharpening their explanatory focus, in particular better differentiating between cause and consequence, contextualizing social relations and social networks, and subjecting the policy ‘solutions’ that follow from each perspective to critical scrutiny. Placing the two in dialogue is beneficial for the further development of each.     

The elements of social capital in the context of six high schools

Purpose: The study described in this paper is part of a larger research project entitled, “Social Capital and Its Effects on the Academic Development of Adolescents At Risk of Educational Failure.” We drew the data for this study from in-depth case studies of six United States public and private secondary schools. We selected the schools based on two criteria: (1) they enrolled substantial proportions of students who would be considered to be at risk of educational failure due to their academic status, social background, or geographical location; and (2) they had qualities that led us to believe that the probability of finding school-based forms of social capital would be high. In selecting schools, we sought variation among settings, selecting case-study sites that allowed us to learn about how schools create and sustain social capital supportive of the academic development of students, particularly students characterized as at risk of failure.Background: In the first part of the larger research project, we used quantitative methods and a large, nationally representative sample of U.S. secondary schools and students. In that study, we documented the existence of a relationship between school-based social capital and such student outcomes as positive academic behaviors, achievement growth over the secondary years, and the probability of dropping out of high school. We operationalized the construct of social capital with two measures of the quality of students’ relationships with their teachers—the extent to which students saw their teachers as supportive and whether students sought guidance from their teachers outside of class. We believed, however, that school-based forms of social capital are more varied and complex than this. Moreover, we thought that it was important to examine in greater detail how social capital itself varies with the organizational and structural characteristics of high schools. Therefore, we embarked on a second phase of our study in which we relied on qualitative methods: specifically, the in-depth investigation of a small set of high schools thought to have social capital but exhibiting important variation on organizational and structural characteristics. Within these schools, we used field-based methods to examine social capital and students’ access to it.Methods: In general, we asked, “What does social capital look like in the six high schools that we studied?” “Do the quality or characteristic of social capital depend on a school’s student body composition, its programs and policies, or the ideologies and traditions that underlie its operation?” “If so, how do these factors influence the quality of school-based social capital that students have access to in a school?” “Are characteristics or elements of social capital especially prevalent or dominant in certain types of schools?” “Which types of schools, given our case-study sites?” “What do the results of these investigations tell us about the nature of social capital—its creation, maintenance, and usefulness to students and teachers in high schools?”Results: Our analyses of interview data and field notes suggest that school-based forms of social capital may be viewed from six different perspectives. These perspectives, which we refer to as elements of social capital in our paper, are:

• 1. Volition and perceived interest in membership. What are the opportunities that individuals have, both in terms of choices between schools and choice of programs within schools, to affiliate with others based on their interests? These choices may strengthen social capital within groups but weaken social capital between groups that comprise a school and its adjacent community.
• 2. Location and integration of social capital across social relationship networks. Where is social capital located in a school? Although we see the primary location for social capital to be between students and teachers, other networks of relationships also influence the extent to which students can gain access to social capital through teachers (e.g., teacher-to-teacher relationships or teacher-to-parent relationships). Integration across these relationships facilitates the formation of new relationships, trust building, and flows of information.
• 3. Impetus for social capital. What are the reasons that people seek to form supportive, collaborative relationships within schools? Such reasons may be individual or organizational, we argue. Nonetheless, social capital is most powerful when the impetus for its creation and maintenance coincide—that is, when organizational factors reinforce personal inclinations, perceived interest, and a sense of community.
• 4. Formation and stock of social capital. How much effort is required to create social capital? Social capital may occur naturally, as in small, rural schools, or it may require substantial effort and purposeful actions, as in large, urban schools. Natural forms of social capital may have negative consequences if they restrict exchanges with external groups to an extent that academic development is curtailed. Purposeful forms may also have negative consequences, if too much effort is required to create and sustain social capital, drawing deeply on already scarce resources.
• 5. Focus and quality of social capital. How is social capital used in a school? Social capital may be used for many different purposes, not all of which promote academic development. Social capital may be used to primarily promote social goals or ends, or even to undermine students’ development and a school’s academic mission. Differences in interest between school members diminish the focus of social capital, weaken its utility for academic purposes, and can create conflicts over its use and function.
• 6. Norms and social control. Do school norms and sanctions promote positive expectations and interactions between members of a school? Behavioral expectations and official actions are an important element of school-based forms of social capital. Over reliance on sanctions can undermine trust, just as does failure to sanction significant violation of rules. The consequences, norms, and sanctions for social capital depends on how much socialization is required to comply with norms, the perceived fairness of norms and sanctions, and the costs and benefits associated with compliance.
• 7. Conclusion: Using these conceptual lenses, we examine how social capital takes shape and is used in six different high schools. We provide examples of how each of the above six elements helps to understand the quality of interactions between students and teachers, as well as the educational environment in which students’ academic development takes place. In concluding the paper, we argue that social capital is a complex yet useful construct for examining the operation of high schools and the academic development of the students who attend them. Moreover, our examination of six high schools suggests that there can be too much social capital in schools and that social capital is most difficult to nurture in places that need it most. Using our field data, we give examples and provide further explanation for why this is so.

%Rather than provide an in-depth treatment of each element, we have instead attempted to lay the groundwork for deeper study and conceptual development of the notion of social capital in this paper. Each of the elements deserves more careful scrutiny, we believe, especially if we are to weave together in a meaningful fashion the conceptual threads that make social capital such an appealing construct. This initial study reveals some of the richness and complexity of social capital as a construct, as well as the utility of examining it through the six conceptual lenses that we use in this paper.     

High School Dropouts After They Exit School: Challenges and Directions for Sociological Research

Sociological research on high school dropouts is largely concerned with who drops out of school and why. Research on the consequences of dropping out is less common. There are clear theoretical reasons to expect dropping out to have a direct and negative effect on life outcomes; however, empirically evaluating these theories is difficult because students who drop out are different from high school graduates in meaningful and complex ways. In this article, I first provide a brief review of sociological research on high school dropouts, emphasizing the demographics of dropouts and reasons for dropping out. I then discuss the possible role of human capital differences, signaling theory, and social closure in creating worse outcomes for high school dropouts and outline the empirical challenges to researching the effects of dropping out. I conclude by discussing avenues for future research and important unanswered questions about the consequences of dropping out.     

The migratory impact of minimum wage legislation: Puerto Rico, 1970-1987

"This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970-1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living."