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Social Indicators Research

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08-04-2021 | Original Research

Welfare States and the Health Impact of Social Capital: Focusing on the Crowding-Out and Crowding-In Perspectives

Author: Naoki Akaeda

Published in: Social Indicators Research | Issue 3/2021

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Abstract

In recent decades, studies in various countries have found that social capital, such as social trust and civic participation, improves health. However, some studies have suggested that the influence of social capital on health may vary depending on welfare provisions because social policies may alter how social capital works. Therefore, this study adopts the crowding-out and the crowding-in perspectives to conduct an international comparative analysis to investigate whether welfare provisions affect the impacts of cognitive and structural social capital on self-rated health. This analysis uses the pooled data from the World Values Survey and cross-classified full models to examine the cross-level interaction effects of public social expenditures (PSE) and two types of social capital, specifically, social trust and civic participation, on self-rated health. The results of this study indicated that the cross-level interaction effects of PSE and the two types of social capital on self-rated health were positive and significant. These results suggested that welfare provisions may enhance the effect of social capital on health.

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According to Engbers et al. (2017), because of “the widespread availability of social trust measures, …trust as a social capital concept has become one of the most used measures” (Engbers et al. 2017, p. 541).

There have been discussions of whether social trust is an appropriate measure of social capital whereas studies on social trust and health are typically regarded as research on the health impact of social capital (Giordano et al. 2019).

Through the analysis of the British Household Panel Survey (BHPS), some studies in the United Kingdom have also uncovered positive causal effects of social trust on psychological and self-rated health (Giordano and Lindström 2011; Giordano et al., 2012).

By adopting panel data from Sweden and the United Kingdom, the prior literature in these countries has also depicted the positive impacts of civic participation on psychological and self-rated health (Fiorillo et al., 2017; Giordano & Lindström 2011; Landstedt et al., 2016).

According to Esping-Andersen, de-commodification indicates the degree of freedom to choose a way of life independently from market participation, and social stratification can be regarded as different degrees of universality for redistribution and inequality (Esping-Andersen 1990, 1999).

Additional information on the World Values Survey can be obtained from the World Values Survey Association (2020).

All analyses in this paper were estimated using Stata 15.0.

Although the random intercept for year is not significant (0.001, n.s.), Schmidt-Catran and Fairbrother (2016) noted that including a redundant random effect for year “should in practice do no harm, as there will always be some random error at any level” (Schmidt-Catran and Fairbrother 2016, p. 35).

To analyze ‘comparative longitudinal survey data,’ three-level multilevel models with year fixed effects, instead of random effect for year, have also been adopted by the international comparative research (Schmidt-Catran and Fairbrother 2016; Voßemer et al. 2018). Although the analysis employing three-level multilevel models with year fixed effects was also conducted as a robustness check, the results are not included because the results adopting three-level multilevel models with year fixed effects (in Table S.1 in the supplementary material) were not substantially different from the results utilizing the cross-classified full models in Table 2.

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Title: Welfare States and the Health Impact of Social Capital: Focusing on the Crowding-Out and Crowding-In Perspectives
Author: Naoki Akaeda
Publication date: 08-04-2021
Publisher: Springer Netherlands
Published in: Social Indicators Research / Issue 3/2021
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-021-02679-7

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