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Social Networks
journal homepage: www.elsevier.com/locate/socnet
Inequality in social capital in Chile: Assessing the importance of network
size and contacts’ occupational prestige on status attainment
Dante Contreras
a,
⁎
, Gabriel Otero
b
, Juan D. Díaz
c
, Nicolás Suárez
d
a
Department of Economics, Faculty of Economics and Business, Universidad de Chile, Santiago, Chile, Diagonal Paraguay 257, Santiago Centro, Santiago, Chile, 8330015,
Santiago, Chile
b
Department of Sociology, University of Amsterdam, Amsterdam, The Netherlands
c
Department of Management Control and Information Systems, Faculty of Economics and Business, Universidad de Chile, Chile
d
Department of Economics, Faculty of Economics and Business, Universidad de Chile, Santiago, Chile
ARTICLE INFO
Keywords:
Social capital
Contacts
Network size
Job prestige
Income
Status attainment
ABSTRACT
Long-standing literature argues that social capital is closely implicated in labour market outcomes. However, this
hypothesis has yet to be tested in Latin America, the most unequal region in the world. We focus on Chile, one of
the most stratifed countries in Latin America. This study examines the relationship between social capital and
four measures of status attainment, including job prestige and employment income. We use data from the frst
wave of the Longitudinal Social Study of Chile (ELSOC), a representative survey of the Chilean urban population
aged 18–75 years. We analyse a subsample of 1,351 individuals who are currently employed. A Bayesian model
of over-dispersion with relational data is used to estimate the size of the network, a novel measure of social
capital. We analyse the data set using linear and logistic regression models and a complementary path analysis,
frst estimating models for the entire sample, and then splitting the sample into three groups to evaluate dif-
ferences within individuals’ socioeconomic background. Results indicate that contacts’ occupational prestige has
a positive association with job prestige and employment income, while the size of the network increases in-
dividuals’ salaries and labour participation. We also observe that social capital fows through stratifed networks
which tend to favour individuals from high socioeconomic backgrounds. We discuss the need to conduct more
in-depth evaluations of how better creation of social capital and its efects on status attainment could be closely
linked to positions of privilege and advantage accumulation processes in highly unequal contexts.
Introduction
Understanding the formation of social networks is a relevant sci-
entifc challenge because personal connections play an important role
in shaping people’s opportunities in life (Marin and Wellman, 2011).
Assessing the relationship between social capital and status attainment
has been one of the most important topics in the literature (see Lin,
2001). Research on this issue has widely demonstrated that social ca-
pital is strongly associated with several outcome variables, namely la-
bour market entry (e.g. Verhaeghe et al., 2015), job satisfaction (e.g.
Flap and Volker, 2001), searching for or changing jobs (e.g.
Granovetter, 1975; Tian and Lin, 2016), job prestige (e.g. Campbell
et al., 1986; Chen and Volker, 2016; Lin et al., 1981; Lin and Dumin,
1986; Son and Lin, 2012; Volker and Flap, 1999), and employment
income (e.g. Bian et al., 2015; Boxman et al., 1991; Bridges and
Villemez, 1986; De Graaf et al., 1988).
In this research agenda, the Social Resources Theory (SRT) and later
formulations developed by Nan Lin have become infuential (Lin, 2001,
1999, 1982; Lin et al., 1981; Lin and Dumin, 1986). He defnes social
capital as the socioeconomic resources embedded in individuals’ social
networks. This is an instrumental approach on the study of social ca-
pital focused on the returns that can be obtained through individuals'
contacts (see also Bourdieu, 1986; Flap and Volker, 2004; Lin and
Erickson, 2008), and difers from a more collective view that regards
social capital as a set of functions of social life (e.g. Putnam, 2000).
Following this instrumental approach, the main goal of this paper is
to test the relationship between social capital and labour market out-
comes in Chile. Specifcally, we analyse a logical sequence of status
attainment that principally includes job prestige and employment in-
come. We contribute to the literature on social capital and status at-
tainment in three ways.
First, we examine a novel context that could be useful for expanding
the discussion of social capital towards emerging countries. To date, the
relationship between social capital and status attainment has mostly
https://doi.org/10.1016/j.socnet.2019.02.002
⁎
Corresponding author.
E-mail addresses: dcontrer@fen.uchile.cl (D. Contreras), gabriel.otero@uva.nl (G. Otero), juadiaz@fen.uchile.cl (J.D. Díaz), nsuarez@fen.uchile.cl (N. Suárez).
Social Networks 58 (2019) 59–77
0378-8733/ © 2019 Elsevier B.V. All rights reserved.
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