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Social capital is the social ties and the norms of trust and reciprocity that underlie them. These ties represent an often overlooked yet crucial asset for individuals and communities. In principle, this form of capital is as valuable to the productivity and well-being of individuals and communities as their financial assets, as well as their education and training. Like financial capital and human capital, social capital is a resource used to maintain and improve quality of life. It is a key unlocking a world of greater possibility. Indeed, it is through friends, colleagues, and acquaintances that individuals and groups receive opportunities to use larger pools of financial and human capital. This entry reviews the benefits of social capital, as well as some of the problems confronting social science in measuring and conceptualizing the value of these assets.

Like financial and human capital, the possessor of such ties must not just simply invest in them and build them over time to be beneficial; they must “spend” them as well. At a personal level, such ties give access to information, opportunities, and resources available only to the friends and acquaintances in our networks. With some personal effort, they can help us get a job, a loan, information, or just plain good advice. The community can benefit from social capital as well. A multiplier effect is realized when groups share their talents and resources. Partnerships have the potential to be stronger, more resilient, and more creative than their partners.

Functions of Social Capital

Social capital benefits individuals and groups in two ways. It bonds a collection of similar individuals together, producing “strong ties” between them. A strongly bonded group offers entrée to a community of persons with similar characteristics, influence, and resources. In contrast, social ties bridge or link differing groups of people, unlocking a wider array of resources and a wider span of influence. Bonding ties allow people with limited resources to maintain their current circumstances and lifestyles better than they might on their own. Bridging ties, in contrast, allow these same people to achieve a better way of life by providing admittance to groups with a greater variety of resources and power. These ties are sometimes referred to as “weak ties” because they represent the larger acquaintance structure of individuals. Weak ties can help people and communities overcome structural barriers to advancement. For both individuals and groups, they offer chances for innovation and change by offering exposure to a range of new ideas, new resources, and diverse populations.

This understanding of the “value” contained in our social ties has led to research concluding that social capital has significant benefits for people's physical and mental health and their overall sense of well-being. Life satisfaction, suicide ideation, depression, colds, heart disease, strokes, cancer, and premature deaths have been linked to reduced social capital, although the mechanisms connected with these relationships remain unclear. Indeed, although the concept of social capital has promoted interest in topics as diverse as the social causes of disease, work productivity, school performance, and the significance of civil society, the concept of social capital is not without its critics.

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