Do Social Resources Matter? Social Capital, Personality Traits, and the Ability to Plan Ahead

31 Pages Posted: 31 Jul 2018

See all articles by Paul Anand

Paul Anand

The Open University - Department of Economics; London School of Economics & Political Science (LSE) - Centre for Philosophy of Natural and Social Science (CPNSS); IZA; University of Oxford

Ambra Poggi

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Date Written: August 2018

Abstract

This paper is motivated by growing interest in noncognitive skills and the fact that many, if not most, economic and social actions require agents to plan ahead. More specifically, we use unique data from the US, UK, and Italy to show that two major classes of social resource—personality and social capital—are significant predictors of planning capacity. We use the data to estimate frontier models that help establish three empirical facts about the ability to plan. First, planning ability depends on a rich array of social resources including networks, the freedom to participate, neighbourhood co‐operation, and trust (social capital) and personality traits such as extroversion, conscientiousness, and emotional stability. Secondly, we provide evidence that some personalities are more efficient than others in using resources to help them plan. Thirdly, we develop evidence of three personality profiles, referred to as ‘over‐controlled’, ‘resilient’ and ‘under‐controlled,’ and highlight the fact that these three profiles benefit differently from various aspects of social resources capital. We discuss these findings and conclude that a wide range of economic policies designed to facilitate individual planning may need to allow for heterogeneities in social resources if they are to be successful.

Suggested Citation

Anand, Paul and Poggi, Ambra, Do Social Resources Matter? Social Capital, Personality Traits, and the Ability to Plan Ahead (August 2018). Kyklos, Vol. 71, Issue 3, pp. 343-373, 2018, Available at SSRN: https://ssrn.com/abstract=3221399 or http://dx.doi.org/10.1111/kykl.12173

Paul Anand (Contact Author)

The Open University - Department of Economics ( email )

Walton Hall
Milton Keynes, MK7 6AA
United Kingdom

London School of Economics & Political Science (LSE) - Centre for Philosophy of Natural and Social Science (CPNSS) ( email )

United Kingdom

IZA ( email )

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Ambra Poggi

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
152
PlumX Metrics