Portal de Periódicos da CAPES

Social Capital, Household Welfare, and Poverty in Indonesia

1999; Linguagem: Inglês

10.1596/1813-9450-2148

1813-9450

Christiaan Grootaert,

Gender, Labor, and Family Dynamics

No AccessPolicy Research Working Papers25 Jun 2013Social Capital, Household Welfare, and Poverty in IndonesiaAuthors/Editors: Christiaan GrootaertChristiaan Grootaerthttps://doi.org/10.1596/1813-9450-2148SectionsAboutPDF (0.2 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:July 1999 It pays for poor households to participate actively in local associations. At low incomes, the returns to social capital are higher than returns to human capital. At higher incomes, the reverse is true. Grootaert empirically estimates how social capital affects household welfare and poverty in Indonesia. His focus: household memberships in local associations, an aspect of social capital especially relevant to daily household decisions that affect welfare and consumption. The data suggest that households with higher social capital spend more per capita. They also have more assets, more savings, and better access to credit. To estimate how social capital contributes to household welfare, Grootaert uses a reduced-form model of household welfare, which controls for relevant household and location characteristics. He measures social capital along six dimensions: density of memberships, internal heterogeneity of associations (by age, gender, education, religion, and so on), meeting attendance, active participation in decision-making, payment of dues, and community orientation. The strongest effects come from: ° Number of memberships. Each additional membership (an average 20 percent increase) raises per capita household spending 1.5 percent. ° Internal heterogeneity. An increase of 20 percent in the heterogeneity index correlates with 3.3 percent more spending. ° Active participation in decision-making. An increase of 20 percent in the participation index correlates with 3.2 percent more spending. Grootaert also estimates structural equations and uses instrumental variable estimation and historical data to address the possible endogeneity of the social capital variable and to demonstrate that the causality runs from social capital to household welfare. This paper - a product of the Social Development Department - is part of a larger effort in the department to assess empirically the role of local institutions in the delivery of services and poverty alleviation. The author may be contacted at [email protected] Previous bookNext book FiguresreferencesRecommendeddetailsCited byImportance of the Social Structures in Cowpea Varietal Demands for Women and Men Farmers in Segou Region, MaliSustainability, Vol.15, No.413 February 2023Political meddling in social assistance programme: Panel data evidence from IndiaJournal of International Development, Vol.4914 December 2022Coping Mechanisms and Quality of Life of Low-Income Households during the COVID-19 Pandemic: Empirical Evidence from BangladeshSustainability, Vol.14, No.2410 December 2022Social trust and income of rural residents: Evidence from ChinaApplied Economics, Vol.124 November 2022Do rural clan‐based networks reduce the risk of a return to poverty? Evidence from ChinaJournal of International Development, Vol.3631 October 2022Sosyal Sermayenin Ekonomik Büyüme Üzerindeki Etkisi: Bir Meta-AnalizUluslararası Ekonomi, İşletme ve Politika Dergisi22 July 2022Social Capital and Delinquency in Bagcilar, TurkeyInternational Criminal Justice Review, Vol.32, No.21 September 2020The relationship between banks' credit quality, credit growth and social capital: evidence from Turkish banking sectorMiddle East Development Journal, Vol.14, No.111 May 2022Multidimensionl Poverty and The Role of Social Capital in Poverty Alleviation Among Ethnic Groups in Rural Vietnam: A Multilevel AnalysisSocial Indicators Research, Vol.159, No.18 July 2021Social networks, shocks, and household consumption in ChinaEconomic Analysis and Policy, Vol.71Social Capital, Financial Literacy, and Rural Household Entrepreneurship: A Mediating Effect AnalysisFrontiers in Psychology, Vol.1227 August 2021Proceed with Caution: Social Capital MeasurementJournal of Economic Issues, Vol.55, No.315 October 2021Does Happiness Pays? A Longitudinal Family Life SurveyApplied Research in Quality of Life, Vol.16, No.223 November 2019Land Loss with Compensation: What Are the Determinants of Income Among Households in Central Vietnam?Environment and Urbanization ASIA, Vol.12, No.15 March 2021Social Capital and Large-Scale Agricultural Investments: An Experimental InvestigationThe Economic Journal, Vol.131, No.63312 May 2020Disease causing poverty: adapting the Onyx and Bullen social capital measurement tool for ChinaBMC Public Health, Vol.20, No.114 January 2020Village poverty governance and the subjective well-being of households in central and western rural ChinaLocal Government Studies, Vol.220 August 2020Do social networks promote homeownership?International Review of Economics, Vol.67, No.227 November 2019The importance of linking social capital in unequal and fragmented societies: an analysis of perceived economic well-being in Turkish rural and urban householdsThe Annals of Regional Science, Vol.7413 January 2020The Effect of Forest Institution Connectedness, Incentive Participation Program, and Social Capital on Public Participation and Welfare as Mediators of Forest Management in Baluran National Park8 January 2020Social Capital and Micro-EntrepreneurshipOrganic certified production systems and household income: micro level evidence of heterogeneous treatment effectsOrganic Agriculture, Vol.9, No.49 November 2018Women's bargaining power and household expenditure in Indonesia: the role of gender-differentiated assets and social capitalGeoJournal, Vol.84, No.411 July 2018Building resilience against food insecurity through social networksInternational Journal of Social Economics, Vol.46, No.7The effects of social capital on farmers' wellbeing in China's undeveloped poverty-stricken areasChina Agricultural Economic Review, Vol.12, No.1The Role of Social Capital and Remote Chinese Villagers' Well-BeingSocial Indicators Research, Vol.143, No.329 October 2018Ekonomik Kalkınmada Birleştirici Sosyal Sermaye Üzerine Bir İncelemeOptimum Ekonomi ve Yönetim Bilimleri Dergisi, Vol.6, No.115 January 2019'Satu Desa, Satu Milyar': Village Law No. 6/2014 as a Rural Financial Development Programme25 January 2019Identifying the Components of Social Capital by Categorical Principal Component Analysis (CATPCA)Social Indicators Research, Vol.141, No.231 January 2018Individual and Contextual Factors of Happiness and Life Satisfaction in a Low Middle Income CountryApplied Research in Quality of Life, Vol.13, No.46 October 2017Does social capital reduce poverty? A cross-sectional study of rural household in BangladeshInternational Journal of Social Economics, Vol.45, No.11Social Capital, Resilience and Accessibility in Urban Systems: a Study on SwedenNetworks and Spatial Economics, Vol.18, No.21 February 2018Towards being equal to them: Impact of organic certified production systems on women empowerment in agricultureAfrican Journal of Agricultural Research, Vol.13, No.1619 April 2018Institutions and Financial Inclusion in Rural Uganda: the Mediating Role of Social CapitalJournal of African Business, Vol.19, No.225 January 2018Gender-differentiated Social and Human Capital and the Use of Microcredit in Bangladeshi Female Entrepreneurship23 February 2018Social Capital and Household Vulnerability: New Evidence from Rural VietnamSSRN Electronic JournalSocial Capital and Public Participation on Planning in Coastal Area DevelopmentIOP Conference Series: Earth and Environmental Science, Vol.7917 August 2017Curvilinear effects of e-loyalty in China's online tourism industryNankai Business Review International, Vol.8, No.2Perspectives on regional innovation policy – From new economic geography towards the IMP approachIndustrial Marketing Management, Vol.61Social Capital for Decentralized Rural Development19 January 2017Community-Level Social Capital and Household Strategies for Coping with Global Crisis in Transitional CountriesSocial Indicators Research, Vol.130, No.210 December 2015Indian Railways – World's largest commercial employer's social capital inventoryEmerald Emerging Markets Case Studies, Vol.6, No.3Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit ModelSocial Indicators Research, Vol.128, No.29 August 2015Social capital effects on the discovery and exploitation of entrepreneurial opportunitiesInternational Entrepreneurship and Management Journal, Vol.12, No.225 November 2014Long-Term Impacts of an Unanticipated Risk Event: The 2007/08 Food Price Crisis and Child Growth in Indonesia19 May 2016Does social capital really determine poverty? Evidence from a Cameroon household surveyAfrican Journal of Science, Technology, Innovation and Development, Vol.8, No.129 April 2016Effects of Stakeholder Conflicts on Community Development Projects in KenyaseSAGE Open, Vol.6, No.1Commercialization of Urban Vegetable FarmingInternational Journal of Vegetable Science, Vol.22, No.113 August 2014Autonomous but constrained: CBOs and urban upgrading in IndonesiaCities, Vol.48The Effect of Social Capital on Governance and Sustainable Livelihood of Coastal City Community MedanProcedia - Social and Behavioral Sciences, Vol.211Remittances, Bonds and Bridges: Remittances and Social Capital in BurundiThe Journal of Development Studies, Vol.51, No.1014 July 2015Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern BhutanAsian Economic Journal, Vol.29, No.317 September 2015The impact of social capital on consumption insurance and income volatility in the UK: evidence from the British Household Panel SurveyReview of Economics of the Household, Vol.13, No.212 April 2013Decentralisation and Citizen Happiness: A Multilevel Analysis of Self-rated Happiness in IndonesiaJournal of Happiness Studies, Vol.16, No.228 March 2014Effect of Certified Organic Production Systems on Poverty among Smallholder Farmers: Empirical Evidence from KenyaWorld Development, Vol.67Shadow prices of social capital in rural India, a nonparametric approachEuropean Journal of Operational Research, Vol.240, No.3Revitalization of Gampong Institution in Aceh: Measuring the program of Back to Gampong in the middle of the changing society: A case in Aceh Besar regencyInternational Journal of Sociology and Anthropology, Vol.6, No.930 September 2014Consumption Behavior of the Poorest and Policy Implications in Indonesia14 July 2013Investigating causal relationship between social capital and microfinanceInternational Journal of Social Economics, Vol.40, No.9The social value of productive entrepreneurshipSmall Business Economics, Vol.40, No.32 December 2011Forms of Social Capital in India: A Case Study of Jhabua DistrictJournal of Asian and African Studies, Vol.47, No.630 January 2012How and Why Determinants of Household Welfare Changed in Azerbaijan During the TransitionProblems of Economic Transition, Vol.54, No.1129 February 2012What is Really Social Capital? A Critical ReviewThe American Sociologist, Vol.42, No.431 March 2011Household Demographics, Assets, and Sustainable Rural Livelihoods: A Case Study from Rain-Endowed South Western Ethiopia20 January 2010The Local Path to Sustainable Development: Social Capital in NaplesChild Health and Mothers' Social Capital in Indonesia Through CrisisSSRN Electronic JournalCrossing the Community-Government Border: The Case of Citrus Biosecurity Management in West Timor, Indonesia17 May 2011The Effect of Availability of School and Distance to School on Children's Time Allocation in GhanaLABOUR, Vol.2424 November 2010Interventions to promote social cohesion in sub-Saharan AfricaJournal of Development Effectiveness, Vol.2, No.3Social capital and public goodsThe Journal of Socio-Economics, Vol.39, No.4Innovation and Social Capital: A Cross-Country InvestigationIndustry & Innovation, Vol.17, No.3Household Awareness of What to Do in a Disaster: A Social Capital ApproachInternational Journal of Mass Emergencies & Disasters, Vol.28, No.14 January 2023The Social Impact of Innovation at the Local Level: Microsoft Corporation and Grameen BankDoes satisfaction matter? A microeconomic empirical analysis of the effect of social relations on economic welfareThe Journal of Socio-Economics, Vol.38, No.2Subjective discount rates among Israeli Arabs and Israeli JewsThe Journal of Socio-Economics, Vol.37, No.6The Decision to Migrate and Social Capital: Evidence from AlbaniaSSRN Electronic JournalCrisis, Connections, and Class: How Social Ties Affect Household WelfareWorld Development, Vol.35, No.4Women's organisations, maternal knowledge, and social capital to reduce prevalence of stunted children: Evidence from rural NepalThe Journal of Development Studies, Vol.43, No.320 March 2007Multinationals and Community Engagement in South Africa and MexicoThe Meaning of Social Capital and Its Link to Collective ActionSSRN Electronic JournalDo Social Relations Affect Economic Welfare? A Microeconomic Empirical AnalysisSSRN Electronic JournalSocial Networks and Household Welfare in Tanzania: Working Together to Get Out of PovertySSRN Electronic JournalRole of Social Capital in Collective Action and Public Work Participation: A Case of Land Consolidation in IranJOURNAL OF RURAL PLANNING ASSOCIATION, Vol.26, No.2Local Capacity, Village Governance, and the Political Economy of Rural Development in IndonesiaWorld Development, Vol.34, No.11Trust in Lending: Social Capital and Joint Liability Seed Loans in Southern ZambiaWorld Development, Vol.34, No.10Relative shadow prices of social capital for household-level paper recycling units in VietnamEcological Economics, Vol.57, No.3Are Friendly Farmers Environmentally Friendly? Environmental Awareness as a Social Capital OutcomeSSRN Electronic JournalThe Contribution of Social Capital to Household Welfare in a Paper-Recycling Craft Village in VietnamThe Journal of Environment & Development, Vol.13, No.424 July 2016Forging Effective New Communities: The Evolution of Civil Society in Zimbabwean Resettlement VillagesWorld Development, Vol.32, No.10Local Institutions, Poverty and Household Welfare in BoliviaWorld Development, Vol.32, No.7Village politics, culture and community-driven development: insights from IndonesiaProgress in Development Studies, Vol.4, No.313 August 2016Exploring Social Capital Debates at the World BankJournal of Development Studies, Vol.40, No.5Do informal risk sharing networks crowd out public voluntary health insurance? Evidence from VietnamApplied Economics, Vol.35, No.10Trust, Membership in Groups, and Household Welfare: Evidence from KwaZulu‐Natal, South AfricaEconomic Development and Cultural Change, Vol.51, No.3Social capital, growth, and poverty: a survey of cross-country evidenceMapping and measuring social capital through assessment of collective action to conserve and develop watersheds in Rajasthan, IndiaSocial capital and the firm: evidence from agricultural traders in MadagascarHow do participation and social capital affect community-based water projects? Evidence from Central Java, IndonesiaLess may not be more, but it still counts: The state of social capital in Yeoville, JohannesburgUrban Forum, Vol.13, No.1Self-Help Groups and Income Generation in the Informal Settlements of NairobiSSRN Electronic JournalThe Effect of Social Capital on Technology Adoption: Evidence from Rural TanzaniaSSRN Electronic JournalImperfect Information, Social Capital and the Poor's Access to CreditSSRN Electronic JournalParticipatory Risk Mapping For Targeting Research And Assistance: With An Example From East African PastoralistsSSRN Electronic JournalSocial Capital, Social Norms and the New Institutional Economics View Published: July 1999 Copyright & Permissions Related RegionsEast Asia & PacificRelated CountriesIndonesiaRelated TopicsCommunities & Human SettlementsFinance and Financial Sector DevelopmentMacroeconomics and Economic GrowthPoverty ReductionRural DevelopmentSocial DevelopmentSocial Protections and Labor KeywordsACCESS TO CRED ASSET ACCUMULATIONBANKBENEFICIARYBONDCONSULTING FIRMCONTRIBUTIONFINANCIAL SUPPORTINFORMATIONINVESTMENTSMARRIAGEMONEYPROVISION OF CRED RESEARCH ASSISTANCERESPONSIBILITYSENIORSOCIAL CAPITALSUPPLYTRAININGWELFARE PDF DownloadLoading ...