Wage Determination in Social Occupations: The Role of Individual Social Capital

63 Pages Posted: 2 Nov 2016

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

Anil Rupasingha

US Department of Agriculture

Multiple version iconThere are 3 versions of this paper

Date Written: October 2016

Abstract

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

Suggested Citation

Hotchkiss, Julie L. and Rupasingha, Anil, Wage Determination in Social Occupations: The Role of Individual Social Capital (October 2016). Andrew Young School of Policy Studies Research Paper Series No. 16-16. Available at SSRN: https://ssrn.com/abstract=2863236 or http://dx.doi.org/10.2139/ssrn.2863236

Julie L. Hotchkiss (Contact Author)

Federal Reserve Bank of Atlanta ( email )

Research Department
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Anil Rupasingha

US Department of Agriculture ( email )

Collier Dr
Geneva, NY
United States

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