Local Capitalism, Civic Engagement, and Socioeconomic Well-Being

Abstract

This analysis is designed to extend a newly emerging body of social stratification research grounded in theories of civil society. The goal of this larger body of research and writing is to provide an alternative social and economic development paradigm to the dominant neoclassical/rational choice/human capital perspective. In an economic world woven together by global market forces, local social structures can become key variables that influence which places prosper and which decline. We begin by hypothesizing that local capitalism and civic engagement variables are associated with positive socioeconomic outcomes (higher income levels and lower levels of income inequality, poverty, and unemployment). To test these notions, we employ data on more than 3,000 U.S. counties. Net of the substantial effects of the control variables, three measures of local civic society —small manufacturing establishments, family farms, and civically engaged religious denominations — vary as hypothesized in three of four models. The performance of these local capitalism and civic engagement variables suggests a robust association with beneficial local socioeconomic outcomes. We conclude by outlining needed research on civil society that would contribute further to a social development perspective.