Social Capital and Poverty in Ecuador, 2010-2012
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Abstract
Objective: To statistically demonstrate how Social Capital contributes to reducing the probability of a household being poor in Ecuador, between 2010 and 2012. Social networks are considered one of the factors that minimize the exposure of households to poverty. This cohesion phenomenon is called Social Capital.
Methodology: the study has a quantitative approach. A probabilistic model was used to determine the relationship between being poor and the participation of household in social networks. Data was analyzed from the section about social participation in household surveys conducted between 2010 and 2012 in Ecuador.
Results: No statistical evidence was found that supported the theory that Social Capital is a variable that contributes to reduce poverty. Nevertheless, the continuous reduction in the probability of Ecuadorian households being poor was evident, controlled by a wide variety of socio-economic variables, such as the education of the head of a household, household structure, and the location and age of the head of the household, amongst others.
Conclusions: Social cohesion is not a factor by which households from Ecuador can overcome poverty, which can be a negative factor in the implementation of social programs involving the community.
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Social Capital, Community Participation, Monetary poverty, Probit model, Logit model.
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