The effects of social capital deprivation for wellbeing: Evidence from the Covid-19 pandemic.

The paper explores the relationship between the Covid-19 pandemic, subjective wellbeing and social capital in the UK. I exploit the pandemic as a quasi-natural experiment of an exogenously induced reduction of social capital as an explanation of the frequently documented reduction in wellbeing during the pandemic period. Differently from the literature, results show that after the onset of the pandemic - when the imposition of restrictions to social interactions occurred - both mental health and life satisfaction substantially decreased, and this decrease was larger for the people who reported having higher pre-pandemic social capital. Results also show however that their wellbeing decrease was not high enough to fully overturn the wellbeing gap usually in their favour. This suggests that the positive effects of social capital for wellbeing are via at least two pathways: in-person social interactions and via the value of having social networks. These results contribute to the literature on the relationship between social capital and wellbeing, as well as the one on the effects of the pandemic for mental health and life satisfaction. Policy implications include investing in social capital to increase overall populations' wellbeing; and, during epidemiological crises, facilitating online psychological support to hamper the negative effects of social isolation, and campaigning to encourage people to keep as much as possible in touch with loved ones and their communities via online social networks and online events to prevent a further degradation of the quantity and quality of social interactions.

The moderation effect of social capital in the relationship between own income, social comparisons and subjective well-being: Evidence from four international datasets.

In this paper we check whether social capital changes the association of subjective well-being with own income and social comparisons. We use panel data from Germany and publicly available data from three international surveys, for a total of nearly 500,000 respondents from industrial countries. Results show that the association of own income and social comparisons to subjective well-being weakens for individuals with high social capital. This finding holds in a variety of settings, and is robust to various measures of subjective well-being, of social capital, and of social comparisons. We also find evidence indicating that the role of social capital is, at least in part, causal. Finally, our findings support the macro-level implication that income differences are less related to subjective well-being differences in countries with high social capital.