Social Capital: One or Many? Definition and Measurement

Martín Paldam

Journal of Economic Surveys · 2000 · 705 citations · 7 references

Concepts

TL;DR

Social capital is conceptualized in three families—trust, ease of cooperation, and network—each yielding distinct definitions and measurement approaches, ranging from theory‑near to proxy‑based methods. The study examines whether the notion that all social‑capital definitions and measures capture a single latent construct is realistic. The analysis demonstrates that all definitions and measures are interrelated, supporting the idea that they tap a common underlying variable.

Abstract

Three families of social capital concepts are discussed: (fa1) trust, (fa2) ease of cooperation, and (fa3) network. In the language of game theory, social capital is the excess propensity to play cooperative solutions in prisoners’ dilemma games. The three families lead to different definitions, and thus to different measurement methods. Some measures are theory‐near, while others are easy‐to‐use proxies. It is shown that all definitions and measures are related. The ‘social capital dream’ is that all definitions try to catch aspects of the same phenomenon, so that all measures tap the same latent variable. It is discussed whether this dream is likely to come true.

References

7