A1 Journal article (refereed)
The effect of early career social capital on long-term income development in Finland (2020)
Oinas, T., Ruuskanen, P., Hakala, M., & Anttila, T. (2020). The effect of early career social capital on long-term income development in Finland. International Journal of Sociology and Social Policy, 40(11/12), 1373-1390. https://doi.org/10.1108/IJSSP-02-2020-0032
JYU authors or editors
Publication details
All authors or editors: Oinas, Tomi; Ruuskanen, Petri; Hakala, Mari; Anttila, Timo
Journal or series: International Journal of Sociology and Social Policy
ISSN: 0144-333X
eISSN: 1758-6720
Publication year: 2020
Volume: 40
Issue number: 11/12
Pages range: 1373-1390
Publisher: Emerald
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.1108/IJSSP-02-2020-0032
Publication open access: Openly available
Publication channel open access: Partially open access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/70370
Abstract
is connected to employees’ long-term income development in Finland.
Design/methodology/approach – Analyses are based on 25–35-year-old employees from the Finnish Living
Conditions Survey of 1994 combined with register data on earned incomes from 1995 to 2016. The authors used questions addressing the frequency of meeting parents or siblings, spending free time with co-workers and
participation in associational, civic or other societal activities as measures of the extent of network capital.
Ordered logistic model was used to examine whether the size and composition of social networks differ by
gender and socio-economic status. Linear growth curve models were employed to estimate the effect of social
capital on long-term income development.
Findings – Results indicate minor differences in network composition according to gender, but large
differences between socio-economic groups. The authors found that income development was faster for those
who participated in civic activities occasionally or who met their relatives or co-workers on a monthly basis,
that is, for the “middle group”.
Research limitations/implications – Results are generalizable only to Finnish or Nordic welfare state
context. The authors’ measures of social capital come from cross-sectional survey. Thus, the authors are not
able to address the stability or accumulation of social capital during life course. This restriction will probably
cause the authors’ analysis to underestimate the true effect of social capital on earned incomes.
Practical implications – Moderate-level investments to network capital seem to be the most beneficial with
regard to the long-term income development.
Social implications – The study results give support to the idea that social capital can be transformed into
economic capital. The results also imply that in economic terms it is important to balance diverse forms of social
capital. At the policy level, a special emphasis should be directed to employees with low-socio-economic
position. These people are especially vulnerable as their low level of income is combined with network
composition that hinders their further income development.
Originality/value – The combined survey and register data give unique insight on how the social capital
embedded in individuals’ social networks is connected with long-term income development.
Keywords: social capital; social networks; labour market; labour status; wage development; income differences; gender; socioeconomic status
Free keywords: gender; social networks; labour market; income; social capital
Contributing organizations
Ministry reporting: Yes
VIRTA submission year: 2020
JUFO rating: 1
