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THE DISTRIBUTION AND RETURN OF SOCIAL CAPITAL: EVIDENCE FROM SWEDEN

ABSTRACT This paper studies the role of social capital in the status attainment process and examines the link between the hiring process and the potential pool of social capital embedded in a person's network. The analysis is based on a sample of people newly employed by the municipal services in Malmö, the third largest city in Sweden. Jobs in this sector of labour market are mainly low-paid, and are dominated by women and immigrants. The position generator method is used to measure social capital, understood as assets captured by individuals in social networks. The findings demonstrate that access to social capital is positively related to work experience, a higher educational level, having a partner, and active membership of voluntary associations. It is also apparent that being an immigrant is associated with a substantial social capital deficit. Regarding the return on capital, the results show that both human capital and social capital were rewarded with higher wages and more adequate jobs. Furthermore, we found that social capital is associated with better labour market outcomes, whether or not respondents reported that they obtained their current jobs using informal job-search methods. Results also show similar returns on access to social capital for natives and immigrants.