We analyze the firm-level labor productivity growth returns of social capital—defined as a synthetic measure of “generalized trust,” “active participation,” and “social norms”—using a large sample of manufacturing firms in France, Germany, Italy, Portugal, and Spain. We find that firms' labor productivity growth is higher in areas with a better social capital endowment. The positive returns of social capital are, nevertheless, unevenly distributed across firms, with smaller, less productive, less capital-endowed, and low-tech firms benefitting the most from operating in strong social capital ecosystems.
CITATION STYLE
Ganau, R., & Rodríguez-Pose, A. (2023). Firm-level productivity growth returns of social capital: Evidence from Western Europe. Journal of Regional Science, 63(3), 529–551. https://doi.org/10.1111/jors.12636
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