We study the relationship between two distinct dimensions of social capital (bridging and bonding social capital) and the personal performances of individuals: their reported subjective well-being (SWB) and earnings. A theoretical model is put forward which explains the sources and dynamics of...

We propose a novel mechanism giving rise to poverty traps and multiple equilibria in economic performance. It is a potentially important source of persistent underdevelopment across countries and regions. At the core of this mechanism, bridging social capital and social trust feed back on each...

Based on data on a cross section of individuals surveyed in the 1999-2002 wave of World and European Values Surveys, we investigate the extent to which bridging and bonding social capital as well as social trust interdependently affect individuals' earnings. Our analysis provides robust evidence...

This paper demonstrates that bridging and bonding social capital as well as social trust interdependently affect individuals' earnings and happiness. Based on cross-sectional World Values Survey 2000 data on individuals from eight Central and Eastern European countries (CEECs), we provide...