It pays for poor households to participate actively in local associations. At low incomes, the returns to social capital are higher than returns to human capital. At higher incomes, the reverse is true

August 1995 - In urban areas of Côte d'Ivoire, human capital is the endowment that best explains welfare changes over time. In rural areas, physical capital - especially the amount of land and farm equipment owned - matters most. Empirical investigations of poverty in developing countries tend...