Wage Determination in Social Occupations: The Role of Individual Social Capital
61 Pages Posted: 10 Nov 2016 Last revised: 30 Aug 2017
Date Written: 2016-11-01
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 nonsocial 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 data from the 2000 decennial census and the 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, nonpublic data, factor analysis
JEL Classification: C34, J24, J31
Suggested Citation: Suggested Citation