Yoshiho Matsunaga

Salary commensurate with social capital

People who possess richer social capital can earn more than others can. An econometric analysis reveals that social capital increases a person’s wage income even as human capital does. Previous empirical studies have clarified that gender, academic history, work history and similar social attributes are determinant factors of earnings. They also hint at other social attributes, apart from those mentioned above, that determine earnings. This article suggests that the positive effect of social capital on annual salary is the same for both men and women. This social capital feature differs from the gender inequality effect of human capital on annual salary in Japan.