The relationship between social capital and health status: Addressing the endogeneity dilemm

This study investigates the relationship between social capital and individual health status; it asks whether a person's social interconnectedness is a health-beneficial resource. This study describes social capital as networks of mutual support, reciprocity, trust and obligation available to individuals built through formal and informal exchange.;Until very recently studies have had several weaknesses: (1) measuring social capital solely as a community characteristic thus ignoring differences in group or individual access; (2) defining states or whole countries as "communities"; (3) ignoring important demographic variables; and finally, (4) not analyzing the possible endogeneity of social capital and health.;Using micro-level data from the 1998-1999 National Health Service Corps Population Health Assessment Survey [NHSC], a system of generalized linear equations is evaluated in order to examine the effect of social capital on health. Instrumental variable techniques are employed to account for non-hierarchical relationships in the model. The sample consists of 6,395 adults representing eight communities in five states (Kansas, Colorado, Rhode Island, Pennsylvania, & Connecticut).;Findings show strong evidence of an endogenous relationship between social capital and health. Using two-stage least squares to account for this endogeneity attenuates the magnitude of the estimates, but the relationship between social capital and health remains positive and statistically significant. This study also finds positive health effects of social capital. Importantly, it appears that social capital confers health advantages on an individual's perceived well-being, not solely aggregate level outcomes.;Implications suggest policy proposals to encourage social linkages to facilitate the creation and access to social capital; for example, banning single-use zoning and municipality set-aside for community "open-space". Moreover, access to social capital should be promoted through volunteers and professionals working to link individuals with available resources in their communities.