This research aims to find the determinants of participation on social organizations
in Chile through a social capital approach, as well as to evaluate the existence
of a positive effect between participation and household welfare. In the case
of economic and local organizations several regressions for participation and
income were run. Due to the existence of endogenity of income in participation
equation, it was estimated a simultaneous model for recreational organizations.
The proposed model includes Two Stage Probit Least Squares estimates suitable
to correct for simultaneity bias when one of the variables is continuous and the
other is dichotomous. Econometric results point out that age, schooling, house
ownership, place of residence and individual perception of both social intercourse
and safety in their neighborhoods have a meaningful effect on participation.
The study also reported on the positive effect between participation in economic
organizations and household welfare.
Keywords:
Social capital, social organizations, welfare effects
Salazar, C. (2016). Is Participation in Social Organizations an Alternative to Improve Household Economic Welfare in Chile?. Estudios De Economía, 36(2), pp. 191–215. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/40225
