The Impact Of Social Capital On The Income And Income Gap Of Farmer Household

The slow growth of household income and income disparities of farmers is a commonphenomenon of the three rural issues. It is an important problem to improve income of farmerhousehold and narrow income gap. Social capital, as an index of reflecting the contactbetween people, has caused wide public concern and become a principle element afterphysical capital, human capital. It affects farmers’ income and the income gap. So there is animportant theoretical and practical significance to use empirical analysis methods to study therelations between social capital and income gap.This study draws on the data of farmer household survey, and divides the social capitalinto four dimensions on the basis of connotation of social capital: social network, social trust,social prestige and social participation, Four dimensional social capital indexes and exponentvalue of social capital are measured; and then the elastic influence of exponent value of socialcapital and social capital structure to household income are studied separately by C-Dfunction, the income determine equation is decides on the regression relation of social capitaland household income. Contribution amount and contribution of household income gap aremeasured by Shapley value, finally the conclusion is reached and suggestions are given.There are five chapters in the study:Chapter one, introduction. At First, the background, purpose and significance areintroduced; and then the literature review at home and abroad are summarized, there is also abrief comment on current study; at last, the research ideas and methods and innovations areintroduced.Chapter two, connotation and measurement of social capital. First, research literature onsocial capital to define the connotation of social capital; second, the social capital are dividedinto four dimensions on the basis of connotation of it, meaning and index of each dimensionare explained; third, the dimension index of social capital and exponent value of social capitalare measured by factor analysis. It is indicated that social capital is a kind of resource formedin groups, which reflects the relationship between association degree, trust degree, respecteddegree and participation degree, people can get group recognition and access to moreopportunities by using the group through this resource; it includes four dimensions: socialnetwork, social trust, social prestige and social participation, the four dimensions of weight are arrayed in descending order: social trust, social network, social participation and socialprestige.Chapter three, positive analysis of social capital and household income. the descriptivestatistics of social capital and household income are calculated, the quantitative analysis of therelationship on social capital and household income are calculated by Grey correlation degreeanalysis, flexibility of three big capital to household income are analyzed by C-D function,flexibility of social capital structure to household income are analyzed by stepwise regressionmethod. It can be concluded that Social capital can increase household income, its flexibilityis between material capital and human capital; social network, social trust, social prestige andsocial participation can promote household income, social participation is the greatestflexibility, followed by social network and social prestige, there is no significant differencebetween social prestige and household income.Chapter four, positive analysis of differences between social capital and farmerhousehold income. first the measure index of income gap is confirmed, then social capital ofdifferent income groups are comparative analyzed, and the importance of social capital toincome gap are analyzed by Grey correlation degree analysis, finally obtain the C-D functionas Income determine equation, contribution amount and contribution of household incomegap are measured by Shapley value. The result shows that social capital can expandhousehold income gap, and in different groups the results are different, social capital canexpand household income gap in low, secondary and high groups, but the result is opposite inimperial group; overall, the indexes of social capital dimension can expand household incomegap, but in different groups are vary in different influence ways. The influence of socialnetwork to household income gap is “expand-narrow-expand”, social trust is expand and thennarrowed, and social network is just opposite to social trust, it is narrowed then expand.Chapter five, conclusion and suggestions. Summarizes the empirical researchconclusion, puts forward the corresponding policy recommendations based on this. It hasincluded pay attention to farmers’ cultivate social capital, strengthen the construction ofcommunity culture life, cultivate and develop the rural community organizations, optimizeinformation acquisition channel, narrow the gap of the income of farmer household byimproving more participation opportunity and collective activities and adjusting social capitalstructure, etc.