The Currency of Connections: An Analysis of the Urban Economic Impact of Social Capital. (February 2017)

• Record Type: Journal Article
• Authors: Engbers, Trent; Rubin, Barry M.; Aubuchon, Craig
• Is Part Of: Economic development quarterly. Volume 31:Number 1(2017:Feb.)
• Page Start: 37
• Page End: 49
• Publication Date: 2017-02
• Subjects: social capital -- urban economic development -- regional economics; Economic development -- Periodicals; Economics -- Periodicals; United States -- Economic conditions -- Periodicals; 330.973
• DOI: 10.1177/0891242416666673
• Languages: English
• ISSNs: 0891-2424

Abstract

Proponents of social capital theory have long argued that it is not only in the best interest of civic life to build social capital but that social capital is vital for the economic health of communities. Yet past studies have failed to distinguish among different types of social capital and have relied on inaccurate measures of economic health. This study reexamines what has become conventional wisdom by analyzing the social capital of American metropolitan areas and its impact on economic well-being. It improves on past studies by examining different types of social capital (i.e., trust, group membership, social networks) and substituting the change in competitive-advantage jobs from shift-share analysis for total job growth and other traditional economic development measures of wealth creation. The study finds that bridging social capital positively affects the economic welfare of communities with respect to job creation.