SOcial capital and Income

 Abstract

This study explores the relationship between Social Capital and Economic Mobility, focusing on children of parents in the 25th percentile income bracket in the United States. Utilizing data from the Opportunity Atlas, we use linear regression and decision tree models to analyze the predictive accuracy of various social capital metrics.

Initially, we examine summary statistics for ten social capital measures among individuals in the 25th percentile. We then construct linear regression models, first using original units of measurement and then standardizing variables for comparison. Concurrently, decision tree analysis identifies influential predictors of economic mobility.

In-sample and out-of-sample root mean square errors (RMSE) are calculated to assess model performance. Results highlight median household income, economic connectedness, and poverty rate as key predictors of economic mobility.

This research contributes to understanding the complex connection between social capital and economic outcomes, providing insights for future studies on socioeconomic mobility.

 Social Capital and Income