Trust: The Social Virtues and the Creation of Prosperity

Ethnic diversity is increasing in most advanced countries, driven mostly by sharp increases in immigration. In the long run immigration and diversity are likely to have important cultural, economic, fiscal, and developmental benefits. In the short run, however, immigration and ethnic diversity tend to reduce social solidarity and social capital. New evidence from the US suggests that in ethnically diverse neighbourhoods residents of all races tend to ‘hunker down’. Trust (even of one's own race) is lower, altruism and community cooperation rarer, friends fewer. In the long run, however, successful immigrant societies have overcome such fragmentation by creating new, cross-cutting forms of social solidarity and more encompassing identities. Illustrations of becoming comfortable with diversity are drawn from the US military, religious institutions, and earlier waves of American immigration.

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E Pluribus Unum: Diversity and Community in the Twenty‐first Century The 2006 Johan Skytte Prize Lecture

In ethnic and racial terms, America is growing rapidly more diverse. Yet attempts to extend racial threat hypotheses to today’s immigrants have generated inconsistent results. This article develops the politicized places hypothesis, an alternative that focuses on how national and local conditions interact to construe immigrants as threatening. Hostile political reactions to neighboring immigrants are most likely when communities undergo sudden influxes of immigrants and when salient national rhetoric reinforces the threat. Data from several sources, including twelve geocoded surveys from 1992 to 2009, provide consistent support for this approach. Time-series cross-sectional and panel data allow the analysis to exploit exogenous shifts in salient national issues such as the September 11 attacks, reducing the problem of residential self-selection and other threats to validity. The article also tests the hypothesis using new data on local anti-immigrant policies. By highlighting the interaction of local and national conditions, the politicized places hypothesis can explain both individual attitudes and local political outcomes.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1666159_code1305535.pdf?abstractid=1666159&mirid=5

Politicized Places: Explaining Where and When Immigrants Provoke Local Opposition

In ethnic and racial terms, America is growing rapidly more diverse. Yet attempts to extend racial threat hypotheses to today's immigrants have generated inconsistent results. This article develops the politicized places hypothesis, an alternative that focuses on how national and local conditions interact to construe immigrants as threatening. Hostile political reactions to neighboring immigrants are most likely when communities undergo sudden influxes of immigrants and when salient national rhetoric reinforces the threat. Data from several sources, including twelve geocoded surveys from 1992 to 2009, provide consistent support for this approach. Time-series cross-sectional and panel data allow the analysis to exploit exogenous shifts in salient national issues such as the September 11 attacks, reducing the problem of residential self-selection and other threats to validity. The article also tests the hypothesis using new data on local anti-immigrant policies. By highlighting the interaction of local and national conditions, the politicized places hypothesis can explain both individual attitudes and local political outcomes.

A growing belief exists that social capital contributes to economic growth of communities. In this paper, we identify inputs into the production of social capital at the level of US counties, using an array of individual and community factors that are theoretically important determinants of social capital. We use data from the Bureau of the Census, County Business Patterns, USA Counties on CD, National Center for Charitable Statistics, and the Regional Economic Information System for two time periods. Ethnic homogeneity, income inequality, attachment to place, education, age, and female labor force participation are strongly associated with levels of social capital across US counties.

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The production of social capital in US counties

In the search for explanations of persistent differences in economic growth rates, the conditional convergence growth model has introduced the possibility of incorporating a wide set of factors as determinants of growth. Controlling for spatial dependence, we assess the contribution of differences in social and institutional variables on growth rates of per capita income for counties in the United States. The empirical results indicate that, ceteris paribus, social and institutio variables explain some of the differences in convergence rates among counties. In particular, (i) ethnic diversity is associated with faster rates of economic growth; (ii) higher levels of income inequality are associated with lower rates; and (iii) higher levels of social capital have a positive effect on economic growth rates.

Social and institutional factors as determinants of economic growth: Evidence from the United States counties*

Crop insurance for agricultural development : issues and experience

The effect of social capital on economic growth is examined using linear regression analysis and U.S. county-level data. Results reveal that social capital has a statistically significant, independent positive effect on the rate of per-capita income growth. The growing literature on social capital has added a new dimension to studies of economic growth, as mainstream economists start to analyze the roles of culture and social ties as factors of production similar to physical and human capital. In particular, economists increasingly recognize that interactions among people and their feelings for each other have clear and predictable economic implications (Robison). Despite this growing recognition, the effect of social capital on economic growth at the level of U.S. counties has not been formally and systematically analyzed. In this paper the conventional B arro-type empirical growth model is expanded to test for the independent effects of social capital or civic engagement on economic growth. Our results suggest that the level of social capital had a statistically

/pdf/social-capital-and-economic-growth-a-county-level-analysis-1pc6jukqyw.pdf

Social Capital and Economic Growth: A County-Level Analysis

State and local governments increasingly look to entrepreneurship as a means of stimulating economic growth. However, can the public sector play a role in promoting entrepreneurial activity—and if so, what should that role be? The authors investigate independent effects of financial and human entrepreneurial capital and ideas on entrepreneurial activity in the 50 states. Financial entrepreneurial capital has an inverse U-shaped relationship with entrepreneurial activity, suggesting there are limits to using increasing amounts of financial capital to stimulate entrepreneurship, all else being equal. The authors rank each state in terms of predicted and actual entrepreneurial activity scores and propose a preliminary measure of the entrepreneurial “climate” of each state. Although most states are ranked near where casual analysis might place them, the authors find that others have predicted values that differ significantly from actual values. This suggests that climate may be an important factor in stimulat...

David Freshwater

Papers

The production of social capital in US counties

Social and institutional factors as determinants of economic growth: Evidence from the United States counties*

Crop insurance for agricultural development : issues and experience

Social Capital and Economic Growth: A County-Level Analysis

State-Level Determinants of Entrepreneurship and a Preliminary Measure of Entrepreneurial Climate