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Individual perception of accessible social capital and attitude to thrift

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Abstract

We empirically assess the effects of individual perception of accessible social capital on individual attitude to thrift in this paper, based on the view that social capital serves as an informal insurance. We look at individual-level data from the World Values Survey. After controlling for demographic characteristics as well as wave and country fixed effects, we find that individual perception of accessible social capital does matter. One who is more generally trusting or has a broader social network tends to value thrift less.

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Notes

  1. See "Many in U.S. Think Lottery, Not Savings, Is Path to Security", Wall Street Journal—Eastern Edition, 10/29/1999, 234 (85), pA6.

  2. Available at http://www.worldvaluessurvey.org.

  3. A new wave of surveys during 2010–2014 is yet to come.

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Acknowledgments

The authors wish to thank Alberto Alesina, Mao-Liang Ye, and Sheng-Chun Zhou for helpful comments and suggestions. We gratefully acknowledge financial supports from Hangzhou Normal University (No. 2012QDW106).

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Authors and Affiliations

  1. School of Economics and Management, Hangzhou Normal University, No. 58, Haishu Rd., Cangqian, Yuhang District, Hangzhou, 311121, Zhejiang Province, China

    Meng-Na Xu & Ming-Lin Wang

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  1. Meng-Na Xu
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  2. Ming-Lin Wang
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Correspondence to Meng-Na Xu.

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Xu, MN., Wang, ML. Individual perception of accessible social capital and attitude to thrift. Rev Econ Household 13, 487–500 (2015). https://doi.org/10.1007/s11150-014-9240-2

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  • DOI: https://doi.org/10.1007/s11150-014-9240-2

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