HOW DOES THE WELFARE STATE INFLUENCE INDIVIDUALS' SOCIAL CAPITAL?

In the current literature there is emerging consensus about a positive correlation between countries' welfare efforts and the social capital of their inhabitants: the larger the welfare state, the more social capital its inhabitants have. This paper pulls the discussion an important step further by asking what mechanisms can be responsible for this correlation. Based on theory and previous findings, we formulate a conceptual model of how the macro–micro relationship could come about. The hypotheses are tested using Eurobarometer data. While most of the mechanisms hypothesised are also found empirically, a substantial part of the direct macro-to-micro effect remains after controlling for the presumed most important intervening factors. Our conclusion is that the relationship is still not well understood and needs more academic attention in future research. [ABSTRACT FROM AUTHOR]