Wage Determination in Social Occupations: The Role of Individual Social Capital
63 Pages Posted: 2 Nov 2016
Date Written: October 2016
We make use of predicted social and civic activities (social capital) to account for selection into "social" occupations. Individual selection accounts for more than the total difference in wages observed between social and non-social occupations. The role that individual social capital plays in selecting into these occupations and the importance of selection in explaining wage differences across occupations is similar for both men and women. We make use of restricted 2000 Decennial Census and 2000 Social Capital Community Benchmark Survey. Individual social capital is instrumented by distance weighted surrounding census tract characteristics.
Keywords: social capital, wage differentials, occupational choice, switching regression, non-public data, factor analysis
JEL Classification: J31, J24, C34
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