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Does education promote social capital? Evidence from IV analysis and nonparametric-bound analysis

Abstract

This study uses the British National Child Development Study to examine the effect of educational attainment on social capital at the individual level. Social trust and membership of voluntary groups are considered as two basic indicators of social capital. We employ the IV analysis and nonparametric bound analysis to tackle the problem of education endogeneity. Both the approaches reveal that the OLS estimator of the educational effect suffers from an upward bias in the study of group membership. We do not observe any significant bias in the educational effect on social trust. Our empirical findings indicate that education has a positive influence in promoting social trust and membership of voluntary groups.

Abbreviations

IV:

Instrumental variable

MTR:

Monotone treatment response

MTS:

Monotone treatment selection

MIV:

Monotone instrumental variable

NCDS:

National Child Development Study

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Acknowledgments

The authors are grateful to Monique de Haan and two anonymous referees for their useful comments. All errors remain our own.

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Correspondence to Wim Groot.

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Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

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Huang, J., Maassen van den Brink, H. & Groot, W. Does education promote social capital? Evidence from IV analysis and nonparametric-bound analysis. Empir Econ 42, 1011–1034 (2012). https://doi.org/10.1007/s00181-011-0450-7

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Keywords

  • Education
  • Social capital
  • Instrumental variable
  • Nonparametric bound

JEL Classification

  • C14
  • I2