In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

Authors

Abstract

Since the 1990s social capital was considered as an engine of economic development. Furthermore, in order to achieve the economic development, countries were invested to create and improve the social capital. In this regard education as the most influential factor was on the agenda. Education by increasing the personal abilities and knowledge can provide the condition for participation, social interaction and presence in social networks and community. On the other hand, education by create and internalize the norms would regulate people`s behavior that lead to an increase in social trust and social capital. In this study we tried to prove this hypothesis that education leads to social capital and the most effective impact on social capital belongs to the primary school as well. For investigating the impact of different levels of education on social capital in Iran during 1981-2011 we used the GMM method. The estimation results show that education has a positive and significant effect on social capital in this period. Among the different levels of education, the most effective level on social capital is the primary and middle school and the factor that has the least effect on social capital with 0/29 coefficient is higher education.

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