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Social Capital, Racial Diversity, and Equity

Robert Putnam’s work suggests social capital is compatible with social equality, while Rodney Hero argues the two are inversely related. Hero and Putnam, however, are limited in their arguments because they have only cross-sectional data and their theoretical arguments imply dynamic relationships over time. We create a state-level social capital index and a measure of racial diversity that varies over time and across states. We use multivariate models to determine whether social capital or racial diversity better predicts levels of policy equity. We find that social capital detrimentally affects policy equity and racial diversity is positively associated with policy equity.