An Empirical Study on Heterogeneous Return of Social Capital across Different Income Groups: Evidence from CFPS
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| Title | An Empirical Study on Heterogeneous Return of Social Capital across Different Income Groups: Evidence from CFPS
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| Author | Sun Baowen and Zhu Shi-e |
| Organization | Central University of Finance and Economics, Xiangtan University |
| Email | sunbaowen@263.net,zhushie@gmail.com |
| Key Words | Social Capital; Income Groups; Inequality |
| Abstract | Based on detailed household and personal survey data from "Chinese Family Panel Studies (CFPS)" conducted by Peking University in 2010, this paper clearly defined three different kinds of social capital: individual, family and clan. Using Quantile Regression method, we estimate the heterogeneous return of different kinds of social capital across different income groups. We find that the return of social capital to the rich is higher than that to the poor, no matter what kinds of social capital we use. As a comparison, the return of labor time to the rich is lower than that to the poor, and education return is similar across different groups. These conclusions are robust to urban and rural subsamples. We develop a simple framework to estimate the effects of heterogeneous return of inputs on income inequality. We find that heterogeneous return of social capital across different income groups will enlarge income inequality, while heterogeneous return of labor time and education will reduce income inequality. |
| Serial Number | WP421 |
| Time | 2013-02-21 |
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