Risks and Resources: Social Capital among Social Assistance Recipients in Norway

Based on a nationally representative panel study covering the period 1985–2003, a Norwegian cohort is investigated with regard to the risks of receiving social assistance benefits. Traditionally, welfare dependency, poverty and receipt of social assistance have been explained by beneficiaries’ human capital deficits, the structural or institutional design of the welfare system, or the level of welfare benefits. This article investigates the potentially mediating effects of social capital on the risks of receiving social assistance in youth and young adulthood. In addition, the role of the institutional welfare design on the accumulation of social capital itself is examined. The resulting analyses suggest that even if individuals’ social capital is related to the risks of receiving social assistance, it is rather the respondents’ human capital and welfare recipiency in itself that are the driving force behind paths leading individuals into further social assistance recipiency. The article concludes with an analysis suggesting that the institutional design of the Norwegian social assistance benefits reduces social capital for the beneficiaries.