This article presents analyses of individual investment in social capital using both the British Household Panel Survey (BHPS) and the UK Time Use Survey (2000) (UKTUS). We suggest a general theoretical framework that could possibly explain individual investment in various forms of social networking. Measures of social capital are then constructed in an attempt to capture the extent of individual investment in bonding, bridging, and linking networks. These measures, together with other socioeconomic indicators, are used as explanatory factors in wage equations, estimated using ordered probit, OLS, and instrumental variable approaches. We are unable to identify any consistent returns from investment in bonding and bridging networks. In contrast, the evidence suggests that any returns to investment in the development of linking social capital simply derive from the positive signals that group membership may transmit to potential employers. Our results underline the contrast between studies that consider social capital as an attribute of communities, as opposed to individuals, in that we find a negative return to social activity at the level of the individual.

Recent work investigating the possible impact of the introduction of the UK National Minimum Wage (NMW) in April 1999 has focused on the analysis of care homes, a sector particularly associated with low-wage employment. In this article we attempt to add to these findings by utilising the Earnings Top-up Evaluation (ETUE) survey which was carried out in 1996, 1997 and 1999, and aimed to over-sample establishments operating in low-wage sectors. Initially, we utilise the panel element of the ETUE to carry out a similar analysis to that adopted for the care homes data. However, in addition to this 'establishment-level' analysis, we also utilise information on wages and employment in three non-managerial skill groups, within this panel of establishments, to carry out an analysis at the level of the skill group. In this second set of analyses we are able to reject the null hypotheses of parameter insignificance, identifying a negative employment effect of the 1999 NMW, although this is only true of one of our indicators of NMW impact and its magnitude is small. In the conclusion to the article, we discuss our results in light of the findings from other similar studies.

Scottish Journal of Political EconomyVolume 51, Issue 1 p. 143-147 Micro-Level Data Sources for Scottish Policy Studies David N. F. Bell, David N. F. Bell University of Stirling and Scottish Economic Policy Network.Search for more papers by this authorGregor Jack, Gregor Jack University of Westminister.Search for more papers by this authorRobert E. Wright, Robert E. Wright University of Stirling, CEPR, IZA and Scottish Economic Policy Network.Search for more papers by this author David N. F. Bell, David N. F. Bell University of Stirling and Scottish Economic Policy Network.Search for more papers by this authorGregor Jack, Gregor Jack University of Westminister.Search for more papers by this authorRobert E. Wright, Robert E. Wright University of Stirling, CEPR, IZA and Scottish Economic Policy Network.Search for more papers by this author First published: 20 January 2004 https://doi.org/10.1111/j.0036-9292.2004.05101009.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Volume51, Issue1February 2004Pages 143-147 RelatedInformation