Social Capital

Last Updated: 04/02/2024

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Overview

Social capital is commonly viewed as a byproduct of an individual’s networks and personal relationships. Leveraging an individual’s social capital can frequently open doors to social connections and educational and career opportunities (entry and advancement through educational pathways, entry and advancement through careers).  Social and economic mobility throughout an individual’s lifetime can especially be aided by social capital, since many individuals change jobs more than ten times, often changing entire fields.

Those looking to use and enhance their social capital for job-getting are encouraged in the literature to attend events to make new connections (e.g., by attending industry-specific conventions, job fairs, and business-hosted social events), develop skills that help them connect with others, join professional organizations, use social media, volunteer, ask for referrals, and follow-up for leads after conversations.

Developing Social Capital

There are generally three types of social capital that are tied to how the networks of individuals are developed:

  1. Bondingcreated through engagement within a group that has shared interests and goals.
  2. Bridgingcreated through engagement across groups when individuals among groups share their interests and goals and work together to achieve them.
  3. Linkingenables individuals to create ties across groups that span different socioeconomic and demographic groups. The resulting linking is associated with increasing upward social mobility of individuals.

Knowing about different types of social capital may encourage individuals to participate in multiple networking development efforts—one group, multiple groups, and groups that span a variety of socioeconomic and demographic groups.  The many resulting networks can increase an individual’s social capital.

Technology 

Advances in technology have resulted in growing the number and types of networking connections. These become an essential part of an individual’s social capital.

  • Sites such as AirbnbUber, and eBay offer users reviews of past users.
  • Social networking sites such as Meta (formerly Facebook) can strengthen individual and group bonds based on sharing interests and experiences.
  • Gaming environments offer opportunities for thousands of players to play video games together on the same server simultaneously. They enable individuals from across socioeconomic groups and demographics to convene and collaborate in virtual online worlds—and individuals often develop social networks beyond the game.

Career Navigation

The Harvard Project on Workforce, in partnership with the National Fund for Workforce Solutions has reported  five core drivers of career navigation success: (1) information accuracy and access, (2) skills and credentials, (3) social capital, (4) wraparound resources and supports, and (5) social structures and ecosystems.

The report notes several ways networking is important in career navigation (page 19):

  • Participating in networking (professional relationship-building) contributes to positive differences in salary growth over time.
  • Networkers may perceive a subjective boost in their career success and satisfaction.
  • Many individuals use social media services for networking and job searching though not all populations experience the same level of benefit (for example low-income job seekers may be less likely to find the same success using online social media platforms and apps as high-income job seekers)
  • Higher-income individuals are more likely to receive callbacks from potential employers than lower-income job seekers, particularly because they are more likely to blend social media usage with other job seeking strategies.

Relation to Ecosystem

Leveraging an individual’s social capital can open doors to educational and career opportunities throughout an individual's lifetime. Social capital is an especially important asset in a rapidly changing education and employment marketplace.

References

Chetty, Raj, et al. "Social capital I: measurement and associations with economic mobility." Nature, 608, no. 7921, 2022, pp. 108-121.

Harvard Project on Workforce. (November (2023). Unlocking Economic Prosperity: Career Navigation in a Time of Rapid Change

Kenton, W. (November 27, 2022). What Is Social Capital? Definition, Types, and Examples (investopedia.com)

 

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