Social Capital and Attitudes Towards Money

22 Pages Posted: 26 Feb 2012  

Alexander Tatarko

National Research University Higher School of Economics

Peter Schmidt

University of Giessen; National Research University Higher School of Economics

Date Written: February 25, 2012

Abstract

The objective of this research was to assess the mechanism through which the individual level components of social capital, that is, individuals’ levels of trust, tolerance and civic identity affect their economic behavior. The sample of the study included 634 respondents aged 20 to 59. A structural equation model relating social capital with economic attitudes was specified and tested controlling for age, gender and education. We found that higher levels of individual social capital were associated with adverse monetary attitudes. Attitudes toward money as a means of influence and protection and the desire to accumulate it reflect a personal sense of dependency on money and lead to constant concern about it. A greater social capital, by providing social support that serves as an alternative source of security, influence, and protection, may reduce this dependence on money. An important finding of our research has been that the component of social capital that correlated most frequently and strongly with monetary attitudes, was civic identity. Generally, based on our findings we propose that the negative association between monetary attitudes and individual level social capital suggests that, when social capital decreases, people try to compensate by accumulating financial capital.

Keywords: social capital, trust, monetary attitudes, social cohesion, civic identity

JEL Classification: Z13

Suggested Citation

Tatarko, Alexander and Schmidt, Peter, Social Capital and Attitudes Towards Money (February 25, 2012). Higher School of Economics Research Paper No. WP BRP 07/SOC/2012. Available at SSRN: https://ssrn.com/abstract=2011044 or http://dx.doi.org/10.2139/ssrn.2011044

Alexander Tatarko (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Peter Schmidt

University of Giessen ( email )

Betriebswirtschaftslehre VII
Giessen, WY 35394
Germany

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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