The impact of social capital on consumption insurance and income volatility in U.K.: evidence from British Household Panel Survey

Publication type

Research Paper

Series Number

44214

Series

MPRA Papers

Authors

Publication date

December 14, 2012

Summary:

On BHPS data we measure various indices of social capital at the individual and household level, and use them as explanatory variables in standard consumption insurance tests. We fi nd that two out of three aspects of social capital positively impact on consumption smoothing, by reducing the sensitivity of idiosyncratic consumption to idiosyncratic income, both in the long and in the short run. Such eff ects, however, turn out to be more pronounced in the long run. Further confi rmation of the positive impact of social capital on insurance opportunities are derived from an income smoothing exercise, as well as from a Poisson and a Logit analysis on the occurrence of unemployment spells.

Subjects

Link

http://mpra.ub.uni-muenchen.de/44214/


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