The Effect of Social Capital on Work Participation and Income Gain in Indonesia

Amount: The Effect of Social Capital on Work Participation and Income In Indonesia

Author: Yefin Amandri Meidika

Item Type: Thesis

Memberships: Master of Management Science Study Program, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia

Publisher: Airlangga University

Abstract

This study aims to analyze the effect of social capital on work participation and labor income. Social capital is formed by 3 dimensions: 1) trust and tolerance (trust), 2) groups and networks (network), and 3) reciprocity and mutual action (reciprocity). The data was obtained from the 2017 Happiness Level Measurement Survey. The micro house data analyzed were 58.806 households. Binary logistic regression was used to analyze the effect of social capital on work participation. The effect of social capital on income is seen using ordinal logistic regression analysis. The work participation model that involves the independent variable of social capital is able to explain better than the work participation model that does not involve social capital. From the research results, it is known that network and reciprocity significantly affect work participation. Trust does not significantly influence individuals to work. A lot of involvement in several communities gives rise to weak ties. Weak ties are useful when someone wants to get information about job openings. The income model analysis shows that three dimensions of social capital significantly and positively affect income. Trust has the greatest impact when it comes to income. Trust is formed in a community that has strong ties but with fewer members (strong ties). Strong ties are useful when a person wants to earn a higher income from his work.

Keywords : social capital, labor market, income, binary logistic regression, ordinal logistic regression

sources: http://repository.unair.ac.id/94166/