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Social Capital – Theory, Measures, and Policy

Social Capital – Theory, Measures, and Policy

Bill ReimerBill Reimer

with the NRE Teamwith the NRE Teamreimer@vax2.concordia.careimer@vax2.concordia.ca

2005/07/262005/07/26

Click on for Click on for the data behind the the data behind the

claims and View claims and View Notes Page for Notes Page for Speakers NotesSpeakers Notes

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How can rural Canada (re)vitalize?

How can rural Canada (re)vitalize?

• Identify the conditions that have Identify the conditions that have contributed to devitalizationcontributed to devitalization

•Organize assets and resources to do the Organize assets and resources to do the things considered importantthings considered important

This ability to organize is:

Capacity

Capacity transforms assets into valued outcomes

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ASSETS•Economic Capital•Human Skills and Abilities•Social Capital•Natural Resources

PROCESSES•Market•Bureaucratic•Associative•Communal

OUTCOMES•Economic wealth•Social and political inclusion•Social Cohesion •Environmental security•Social and self-worth•Health•Personal Security

outcomes can become outcomes can become new assets and new assets and

liabilitiesliabilities

CAPACITY MODELCAPACITY MODEL

Return

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Context MattersContext Matters

•exposure to global economies•stability of the local economy•adjacency to metro regions•social and institutional capacity

ASSETS•Economic Capital•Human Skills and Abilities•Social Capital•Natural Resources

PROCESSES•Market•Bureaucratic•Associative•Communal

OUTCOMES•Economic wealth•Social and political inclusion•Social Cohesion •Environmental security•Social and self-worth•Health•Personal Security

outcomes can outcomes can become new assets become new assets

and liabilitiesand liabilities

CAPACITY MODELCAPACITY MODEL

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The NRE Sample FrameThe NRE Sample FrameLow CapacityHigh Capacity

LagLeadLagLead

Distant

Adjac.

Distant

Adjac.

Distant

Adjac.

Distant

Adjac.

Local Exposed

Stable

Fluctu-ating

Stable

56169915

45710012

1351612

9454

3018165

198264

4412413251

154627175Fluctu-ating

Global Exposed

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NRE…The Rural ObservatoryNRE…The Rural Observatory

…an International Network

…an International Network

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Social CapitalSocial Capital

• One type of asset or resource (stock)One type of asset or resource (stock)• Social assets potentially useful for outcomesSocial assets potentially useful for outcomes• Network structuresNetwork structures

Bonding, bridging, linking, density, etc.Bonding, bridging, linking, density, etc.• Normative structuresNormative structures

Market, bureaucratic, associative, communalMarket, bureaucratic, associative, communal

relationships, networks, and associated norms that facilitate collective action

Capacity Model

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Market

Associative Commun

al

R ob s onE con om ic

Jon esS oc ia l

P o ls onP o lit ica l

S m ithP res id en t

Bureaucratic

High Capacity = Agility with all systems

The Type of Social Relation MattersThe Type of Social Relation Matters

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How is social capital to be measured?

How is social capital to be measured?

•Social capital is about social relationsSocial capital is about social relations

•Reflected in institutions, organizations, Reflected in institutions, organizations, groups, events (AVAILABLE social capital)groups, events (AVAILABLE social capital)

•Reflected in the USE of these groups and Reflected in the USE of these groups and networksnetworks

•Rooted in 4 types of social relationsRooted in 4 types of social relations

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Measuring AVAILABLE Social CapitalMeasuring AVAILABLE Social Capital

•Market relationsMarket relations: Enterprises, Financial : Enterprises, Financial institutions (formal and informal), institutions (formal and informal), commercial servicescommercial services

•Bureaucratic relationsBureaucratic relations: Schools, Gov’t : Schools, Gov’t organizations, corporationsorganizations, corporations

•Associative relationsAssociative relations: Voluntary associations: Voluntary associations

•Communal relationsCommunal relations: Family networks, : Family networks, Daycares, Senior citizens’ centres, Religious Daycares, Senior citizens’ centres, Religious organizations, Community-integration eventsorganizations, Community-integration events

Sites

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Measuring USE of Social CapitalMeasuring USE of Social Capital

• Market-basedMarket-based: Employment, M-Internet, : Employment, M-Internet, market services, employment organizations, market services, employment organizations, market supportmarket support

• Bureaucratic-basedBureaucratic-based: B-Internet, bureaucratic : B-Internet, bureaucratic services, actions re. bureaucracies, services, actions re. bureaucracies, bureaucratic supportbureaucratic support

• Associative-basedAssociative-based: A-Internet, associative : A-Internet, associative services, associative-based groups, services, associative-based groups, associative actions, associative supportassociative actions, associative support

• Communal-basedCommunal-based: C-Internet, sharing goods, : C-Internet, sharing goods, sharing services, family supportsharing services, family support

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Are the normative structures related?Are the normative structures related?Within LevelsWithin Levels

SitesSites: Market, Bureaucratic, Associative correlate: Market, Bureaucratic, Associative correlateHHsHHs: Bureaucratic, Associative, Communal correlate: Bureaucratic, Associative, Communal correlate

Across LevelsAcross LevelsAvailable social capital not always used Available social capital not always used ..

Type of social capital matters .Type of social capital matters .

Census proxies depend on type of social capital Census proxies depend on type of social capital ..

Policy: Third sector strategic choice for Policy: Third sector strategic choice for economyeconomy

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Does context have specific effects on production and use of social capital?Does context have specific effects on production and use of social capital?

•YesYes (more social capital use in): (more social capital use in): Connected to global economyConnected to global economy Fluctuating local economyFluctuating local economy Remote from metropolitan centresRemote from metropolitan centres Low institutional capacityLow institutional capacity Socio-economic leadersSocio-economic leaders

•Condition relationship between social capital Condition relationship between social capital and outcomes and outcomes ..

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Policy ImplicationsPolicy Implications

•Build from social capital strengthsBuild from social capital strengths Social capitals are substitutableSocial capitals are substitutable

•Organize for incompatibilitiesOrganize for incompatibilities e.g. Bureaucratic and Associativee.g. Bureaucratic and Associative

•Adapt to local conditionsAdapt to local conditions Non-metro: Associative and CommunalNon-metro: Associative and Communal Globally connected: AssociativeGlobally connected: Associative

•Develop multiple measuresDevelop multiple measures

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Social Capital Theory, Measures, and Policy

Social Capital Theory, Measures, and Policy

The Canadian Rural Revitalization The Canadian Rural Revitalization FoundationFoundation

nre.concordia.canre.concordia.ca

www.crrf.cawww.crrf.ca2005/07/262005/07/26

Become an

investor today!

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NRE Field Sites by AVAILABLE Types of Social CapitalNRE Field Sites by AVAILABLE Types of Social Capital

Source: 19 NRE Site Profiles 2000

0

4

8

12

16

20

Communal Associative

Bureaucratic Market

Return

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Correlation between Types of AVAILABLE Social Capital: Site-level

Correlation between Types of AVAILABLE Social Capital: Site-level

Bureaucratic Associative Communal

Market .76** .84** .29

Bureaucratic .87** .12

Associative .13

(r) 19 sites – raw sums with skewed variables logged ** p<.01Source: NRE Site Profiles 2000 Return

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Correlation between Types of USE of Social Capital: HH-levelCorrelation between Types of USE of Social Capital: HH-level

Bureau. Associative Communal

Market .18 .28 .27

Bureau. .37 .41

Associative .29

(r) 1995 HHs – sums of logged items p<.01Source: NRE HH Survey 2001 Return

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AVAILABLE Social Capital is not always USEDAVAILABLE Social Capital is not always USED

AVAILABILITY of Social Capital (Site-level)

USE of SoKp (HH-level)

Market Bureau. Assoc. Comm. Total

Market .12 .08 .21 .15

Bureaucratic .22 .13 .35 .29

Associative .20 .09 .28 .22

Communal -.18 .09 .07 .05*

Total .19 .12 .32 .25

• (r) (N=1849) Unless otherwise indicated p<.01; * p<.05• Availability is measured at the site level (Source: NRE Site Profiles 2000)• Use is measured at the household level (Source: NRE HH Survey 2001) Return

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Type of USE of Social Capital matters for HH Incomes

Type of USE of Social Capital matters for HH Incomes

($4,000)

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

B C

oeffi

cie

nt

• Adj. RAdj. R22 = .37 = .37• Constant = $9102Constant = $9102• N = 1697N = 1697• Logged values for Logged values for

USE of social USE of social capitalcapital

• P < .05P < .05• Source: NRE HH Source: NRE HH

survey, 2001survey, 2001• Total HH incomeTotal HH income• Market, Market,

bureaucratic, bureaucratic, communal, communal, associative: associative: indexes of types of indexes of types of social capitalsocial capital

• Education of the Education of the respondentrespondent

• HH Size: number of HH Size: number of people in the people in the householdhousehold

Return

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Census Proxies for Social CapitalCensus Proxies for Social CapitalTotalTotal MarketMarket Bureau.Bureau. Assoc.Assoc. Comm.Comm.

LF Particip.LF Particip. .45*.45* .74*.74*

Median HH Median HH IncomeIncome

.66*.66* .81**.81** .52*.52*

% Gov’t % Gov’t TransfersTransfers

-.73**-.73**

% English MT% English MT .58**.58** .70**.70** .55*.55* .60*.60*

IQV Visible IQV Visible MinoritiesMinorities

.50*.50* .58**.58** .67**.67**

• (r) (N=19) * p<.05; ** p<.01• Average social capital by site (Source: NRE HH Survey 2001; Statistics Canada, Census 2001)

ReturnNext

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Use of Associative Social Capital by Census Proxy

Use of Associative Social Capital by Census Proxy

• RR22(Adj)=.56(Adj)=.56• Census Variables:Census Variables:

IQV for Visible IQV for Visible Minorities and othersMinorities and others

% English Mother % English Mother TongueTongue

• Average of Use of Average of Use of Associative social Associative social capitalcapital

• NRE HH Survey 2001NRE HH Survey 2001

Regression Standardized Predicted Value

3210-1-2

Avg

Use

of a

ssoc

iativ

e so

cial

cap

ital

4.0

3.5

3.0

2.5

2.0

1.5

1.0

20

19

18

17

16

15

14

13

12

11

109

8

7

6

54

3

21

Return

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Perception vs. Behaviour-based Indicators of Social Cohesion

Perception vs. Behaviour-based Indicators of Social Cohesion

MarketMarket BureauBureau Assoc.Assoc. ComnlComnl TotalTotal

Community Community CohesionCohesion

.10.10 .11.11 .25.25 .18.18 .24.24

Psychol. Psychol. CohesionCohesion

.09.09 .12.12 .25.25 .17.17 .24.24

Attract-Attract-ivenessiveness

.14.14 .08.08 .09.09

Neighbour-Neighbour-linessliness

.13.13 .08.08 .15.15 .20.20 .21.21

(r) All correlations significant at .01 level (2-tailed)

(r) All correlations significant at .01 level (2-tailed)

Source: NRE HH survey 2001: 1991 respondentsSource: NRE HH survey 2001: 1991 respondents

Return

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Use of Social Capital by NRE Sample Frame Dimensions

Use of Social Capital by NRE Sample Frame Dimensions

GlobalGlobal StableStable Adjac.Adjac. Hi Cap.Hi Cap. LeadingLeading

MarketMarket .18**.18** -.12**-.12** .18**.18**

Bureau.Bureau.

Assoc.Assoc. .05*.05* -.06**-.06** -.06**-.06** .17**.17**

Comm.Comm. .05*.05* -.05*-.05* -.11**-.11**

TotalTotal .10**.10** -.10**-.10** -.05*-.05* -.05*-.05* .16**.16**

• (r) (N=1995) * p<.05; ** p<.01 (confirmed by ANOVA)• Use is measured at the site level (Source: NRE Site Profiles 2000) Return

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Context Important for Transforming Assets into Outcomes (e.g. Income)

Context Important for Transforming Assets into Outcomes (e.g. Income)

3344

4466335522221111

.35.35.43.43

HiCap.HiCap.LoCap.LoCap.

5533

4466334422221111

.31.31.41.41

Metro Metro Adj.Adj.

N.AdjN.Adj

6655445533334422221111

.43.43.29.29

Fluct.Fluct.StableStable

3355556644443322221111

.35.35.42.42

GlobalGlobalLocalLocal

665544332211

.37.37

TotalTotal

Assoc.Assoc.Comm.Comm.Bureau.Bureau.HH SizeHH SizeEducEducMarketMarketRR2

• Regression of HH Income on Social Capital, etc. under NRE Sample Frame conditions• Ranks based on standardized coefficients• Source: NRE HH Survey 2001 (1995 HHs) • USE of social capital• USE of social capitalReturn

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Market

Associative Communal

R ob sonE con om ic

Jon esS oc ia l

P o lsonP o lit ica l

S m ithP res id en t

Bureaucratic

High Capacity = Agility among systems

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What are the most appropriate levels of analysis for evaluating collective social capital?

What are the most appropriate levels of analysis for evaluating collective social capital?

•Depends on the purposeDepends on the purpose

•Our objective: Rural RevitalizationOur objective: Rural Revitalization

•Strategy:Strategy: Examine multiple levels (households, sites, Examine multiple levels (households, sites,

regions, provinces, nation)regions, provinces, nation) Examine social capital within and across levels Examine social capital within and across levels

What are the limits of aggregation of individual social capital for estimating collective social capital?

What are the limits of aggregation of individual social capital for estimating collective social capital?

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Can communities be analyzed as “networks of networks”?

Can communities be analyzed as “networks of networks”?

•Networks used in complex waysNetworks used in complex ways e.g. Health: Communal, Associative, Bureaucratic e.g. Health: Communal, Associative, Bureaucratic

integrationintegration

•Low correlation between community as Low correlation between community as action and community as perceptionaction and community as perception e.g. social cohesione.g. social cohesion

Policy: multiple strategies for social cohesionPolicy: multiple strategies for social cohesion