Title: The Influence of Social Capital on Work Participation and Income Earning in Indonesia

Author: Yefin Amandri Meidika

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

This research aims to analyze the influence of social capital on work participation and labor income. Social capital is formed by 3 dimensions: 1) trust and tolerance, 2) groups and networks, and 3) reciprocity and joint action (reciprocity). Data was obtained from the 2017 Happiness Level Measurement Survey. The micro house data analyzed was 58,806 households. Binary logistic regression is used to analyze the effect of social capital on work participation. The influence of social capital on income is seen using ordinal logistic regression analysis. The work participation model that involves the independent variable 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 influence work participation. Trust does not significantly influence individuals to work. Heavy involvement in several communities gives rise to weak ties. Weak ties are useful when someone wants to get information about job vacancies. Analysis of the income model shows that three dimensions of social capital significantly and positively influence income. Trusts have the greatest influence when linked to income. Trust is formed in communities that have strong ties but with fewer members (strong ties). Strong ties are beneficial when someone wants to earn a higher income from their work.

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

 

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