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Abstract Social capital—the strength of an individual’s social network and community—has been identified as a potential determinant of outcomes ranging from education to health 1–8 . However, efforts to understand what types of social capital matter for these outcomes have been hindered by a lack of social network data. Here, in the first of a pair of papers 9 , we use data on 21 billion friendships from Facebook to study social capital. We measure and analyse three types of social capital by ZIP (postal) code in the United States: (1) connectedness between different types of people, such as those with low versus high socioeconomic status (SES); (2) social cohesion, such as the extent of cliques in friendship networks; and (3) civic engagement, such as rates of volunteering. These measures vary substantially across areas, but are not highly correlated with each other. We demonstrate the importance of distinguishing these forms of social capital by analysing their associations with economic mobility across areas. The share of high-SES friends among individuals with low SES—which we term economic connectedness—is among the strongest predictors of upward income mobility identified to date 10,11 . Other social capital measures are not strongly associated with economic mobility. If children with low-SES parents were to grow up in counties with economic connectedness comparable to that of the average child with high-SES parents, their incomes in adulthood would increase by 20% on average. Differences in economic connectedness can explain well-known relationships between upward income mobility and racial segregation, poverty rates, and inequality 12–14 . To support further research and policy interventions, we publicly release privacy-protected statistics on social capital by ZIP code at https://www.socialcapital.org .
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Individualistic culture increases economic mobility in the United States
Where an individual grows up has large implications for their long-term economic outcomes, including earnings and intergenerational mobility. Even within the United States, the “causal effect of place” varies greatly and cannot be fully explained by socioeconomic conditions. Across different nations, variation in growth and mobility have been linked to more individualistic cultures. We assess how variation of historically driven individualism within the United States affects mobility. Areas in the United States that were isolated on the frontier for longer periods of time during the 19th century have a stronger culture of “rugged individualism” [S. Bazzi, M. Fiszbein, M. Gebresilasse, Econometrica 88, 2329–2368 (2020)]. We combine county-level measures of frontier experience with modern measures of the causal effect of place on mobility—the predicted percentage change in an individual’s earnings at age 26 y associated with “growing up” in a particular county [R. Chetty, N. Hendren, Q. J. Econ. 133, 1163–1228 (2018)]. Using commuting zone fixed effects and a suite of county-level controls to absorb regional variation in frontier experience and modern economic conditions, we find an additional decade of frontier experience results in 25% greater modern-day income mobility for children of parents in the 25th percentile of income and 14% for those born to parents in the 75th percentile. We use mediation analysis to present suggestive evidence that informal manifestations of “rugged individualism”—those embodied by the individuals themselves—are more strongly associated with upward mobility than formal policy or selective migration.
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- Award ID(s):
- 2117660
- PAR ID:
- 10350787
- Date Published:
- Journal Name:
- Proceedings of the National Academy of Sciences
- Volume:
- 118
- Issue:
- 37
- ISSN:
- 0027-8424
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1073/pnas.2107273118
