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(Historical) Income inequality and social capital.

Msuya, Emmanuela Furaha
Master thesis
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http://hdl.handle.net/11250/2485562
Utgivelsesdato
2017
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Samlinger
  • Master of Science [1116]
Sammendrag
This master thesis examines whether – and, if so, how – income inequality has an

impact on social capital looking from a historical and present perspective.

After a brief literature review and a detailed theoretical discussion, my empirical

analysis uses municipality-level data and covers all 428 municipalities currently

existing in Norway. It covers the period from 1993 to 2015, but also incorporates

historical income inequality data from 1865. My main measure for social capital

is financial donations to the annual TV-aksjonen.

I implemented several empirical models, ranging from pooled OLS regressions

and fixed effects panel regressions on the complete set of data, to IV regression

models on pooled and municipality-averaged datasets. The latter approach was

particularly important since there was no over-time variation in the instrument

available to deal with potential endogeneity concerns in the relation between

inequality and social capital.

My main conclusion from using the sample of 428 municipalities is that an

increase in income inequality over time within a given municipality has little to no

effect/relation on how much people donate (Social Capital).
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Economics - Handelshøyskolen BI, 2017
Utgiver
BI Norwegian Business School

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