Predictors of Social Capital in Two Urban Neighborhoods - Is Social Capital Influenced By Income?

Background:

U.S. Census data and longitudinal poverty studies indicate that the intergenerational transmission of poverty is a formidable barrier faced by many Americans today.  This study examined the contribution of various predictors to bridging and linking social capital in two urban neighborhoods.  Social capital is a collective asset shared by members of a social network, based on trust and reciprocity. While bridging social capital is the exchange of trust and resources between individuals of different sociodemographic groups, linking social capital encompasses exchanges between individuals with differing levels of power or between individuals and institutions. Homophily theory explains that interactions between people with similar resources and in similar social positions are more likely to occur than interactions between people of different social positions.  People in lower social positions have less resources to offer, thus exchanging resources with people in higher positions is less common.

The aim of this study was to determine if income (as a proxy for social position) predicts levels of bridging and linking social capital, such that lower-income individuals will have lower bridging and linking social capital compared to middle- and higher-income individuals.

Methods:

Data were collected in 2013 from a survey of residents and community stakeholders in two urban neighborhoods.  The survey was the first evaluation phase of the Baltimore Community Foundation’s Target Neighborhoods Initiative.  Participants  (N=415) were predominantly female (62.7%), Caucasian (59.6%), and highly educated, with 62.4% possessing a Bachelor’s degree or more. 

Hierarchical regression models were used to predict variance in bridging and linking social capital.  Bridging and linking social capital were measured using University of Minnesota’s Social Capital Model. A separate regression model was run for each outcome variable. There were four steps in each model:  1) gender, race, and education, 2) neighborhood, 3) homeownership status and years in the community, and 4) annual household income. 

Results: 

Education was the only significant predictor of bridging social capital, and race and homeownership status were significant predictors of linking social capital.  Respondents with a Bachelor’s degree or more had higher bridging social capital compared to respondents with less than a high school diploma (β=.283, p<.001). Being multiracial, Hispanic, Asian, or Native American predicted lower linking social capital compared to Caucasian respondents (β=-.133, p<.05); being a homeowner predicted higher linking social capital compared to non-owners (β=.261, p<.001).   Annual household income was not a significant predictor of either outcome variable.  The final models’ adjusted R² indicate that 8.4% of the variance in bridging social capital and 9.8% of the variance in linking social capital was explained by all of the predictors.

Implications:

These findings suggest that being highly educated positively predicts resource exchanges between people from different social groups; being Caucasian and a homeowner positively predicts resource exchanges with institutions and powerful individuals. Bridging and linking social capital are indicative of community and individual well-being, and are associated with social mobility.  Implications for community practitioners seeking to increase bridging and linking social capital include developing programs to increase homeownership, especially among racial minorities and those with less education.