Estimating the return on social capital in Russian conditions

Abstract

Subject. The article investigates the role of social capital as a factor of competitiveness in the Russian labor market. Objectives. The purpose is to estimate the impact of social capital on employment prospects, wages, work and life satisfaction in Russian conditions. Methods. I use the data of the Russian Longitudinal Monitoring Survey to estimate the return on social capital. Summary indicators of social capital are estimated, using the factor analysis of survey variables that characterize relationships with relatives, work colleagues, friends, etc. To consider the effect of self-selection in employment for women, I use the Heckman model. Results. The study revealed that good relations with colleagues and the ability to use their resources to solve professional problems closely correlate with wage growth, minimize risks of unemployment, and contribute to increasing the job and life satisfaction. The ability to get support from relatives does not affect success in the labor market, but has a significant positive impact on life satisfaction. Having good friends has a positive effect on both life and work satisfaction, especially for women. Conclusions. A significant impact of good relations with colleagues on success in the labor market and subjective well-being demonstrates the importance of forming and developing a network of professional contacts as a factor of building a successful career. Friendly atmosphere, mutual support of labor collective members, good personal relations with the closest partners are important factors of success in Russian conditions. They require special attention of managers.