Social determinants of identity in communities: A social capital- and social categorization-based approach – findings from Latvia

Abstract

The article investigates the relations, in the light of new paradigms of economic development, between trust and economic wealth at the micro level in the Republic of Latvia, by means of a structural equation modelling-based approach and a framework combining social capital and social identity theory, in a rationale of cross-fertilization between social and cognitive science. Results are also tested against control dimensions reflecting relevant divides in Latvian society (residence place dimensions; ethno-linguistic belongings; educational differences). General results support the hypothesis of the existence of a causal path connecting personal wealth, institutional trust, social engagement and trust towards people. Results are found to be highly sensitive to the geographical and educational divide (but not to the ethno-linguistic one).