The Impact of Social Capital on Household Welfare in Indonesia Using the Propensity Score Matching Method
DOI:
https://doi.org/10.37385/ijedr.v7i1.10598Keywords:
Household Welfare, Social Capital, Propensity Score Matching, IndonesiaAbstract
This study aims to analyze the impact of social capital on household welfare in Indonesia. Social capital is considered an important asset that contributes to improving the economic and social welfare of households, but access to and utilization of social capital is not always evenly distributed among different groups in society. This study uses the Propensity Score Matching (PSM) method with the Average Treatment Effect on the Treated (ATT) approach and stratification techniques to estimate the influence of various social capital indicators on household welfare. The estimation results show that social capital has a positive and significant effect on household welfare, particularly through participation in social gatherings, membership in cooperatives, religious activities, neighbourhood security, social gatherings, women's activities, and childcare. However, some forms of social capital that are communal in nature and related to basic services do not show a significant difference in household welfare. These findings confirm that strengthening social capital plays an important role in improving household welfare in Indonesia
References
Alemu, M., & Tola, S. (2020). Social capital and its implication for economic wellbeing and sustainable development: Household level analysis to Jimma Zone, South-West Ethiopia. Journal of Analytical Techniques and Research, 2(1). https://doi.org/10.26502/jatri.010
Bhandari, P. S. (2024). Unraveling the complexities of social capital: A comprehensive review. Nepalese Journal of Development and Rural Studies, 21(1), 28–38. https://doi.org/10.3126/njdrs.v21i01.80393
Caliendo, M., & Kopeinig, S. (2008). Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys, 22(1), 31–72. https://doi.org/10.1111/j.1467-6419.2007.00527.x
Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95–S120. https://doi.org/10.1086/228943
Faisal, A., Ali, M. S. S., Rahmadanih, & Lakare, H. C. (2025). Exploring the role of social capital in enhancing economic activity among poor households. Asian Development Policy Review, 13(3), 254–265. https://doi.org/10.55493/5008.v13i3.5516
Fiorillo, D., Lavadera, G. L., & Nappo, N. (2020). Individual heterogeneity in the association between social participation and self-rated health: A panel study on BHPS. Social Indicators Research, 151(2), 645–667. https://doi.org/10.1007/s11205-020-02395-8
Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed.). McGraw-Hill.
Imbens, G. W., & Wooldridge, J. M. (2009). Recent developments in the econometrics of program evaluation. Journal of Economic Literature, 47(1), 5–86. https://doi.org/10.1257/jel.47.1.5
Jumirah, J., & Wahyuni, H. (2018). The effect of social capital on welfare in Indonesia. Journal of Indonesian Economy and Business, 33(1), 65. https://doi.org/10.22146/jieb.29219
Kinanti, A. F., Maulana, M. S., & Yasin, M. (2024). Analisis pola konsumsi di Indonesia sebagai indikator peningkatan kesejahteraan masyarakat. Digital Bisnis: Jurnal Publikasi Ilmu Manajemen dan E-Commerce, 3(2), 19–32. https://doi.org/10.30640/digital.v3i2.2430
Mukharohmah, M. S., Wulandari, M. C., & Naufal, H. A. (2024). Analisis modal sosial dan kemiskinan: Studi cross sectional 34 provinsi di Indonesia. Ecoplan, 7(2), 165–175. https://doi.org/10.20527/ecoplan.v7i2.738
Narayan, D., & Pritchett, L. (1999). Cents and sociability: Household income and social capital in rural Tanzania. Economic Development and Cultural Change, 47(4), 871–897. https://doi.org/10.1086/452436
Nasution, A., Rustiadi, E., Juanda, B., & Hadi, S. (2014). Dampak modal sosial terhadap kesejahteraan rumah tangga perdesaan di Indonesia. MIMBAR.
Nasution, W. R., & Fahlevi, M. R. (2022). Peran pemerintah dan modal sosial terhadap kesejahteraan masyarakat kurang mampu di Kabupaten Aceh Utara. Jurnal Sosiologi Dialektika Sosial, 7(2), 74. https://doi.org/10.29103/jsds.v1i2.5024
Purbowo, P., & Rahmadhani, I. P. D. (2025). Pengaruh modal sosial terhadap tingkat kesejahteraan rumah tangga petani bawang merah di Kabupaten Nganjuk. JIA (Jurnal Ilmiah Agribisnis): Jurnal Agribisnis dan Ilmu Sosial Ekonomi Pertanian, 10(1), 40–49. https://doi.org/10.37149/jia.v10i1.1770
Rani, A., Quddoos, A., Yaseen, M. R., Tabassum, S., & Asif, A. (2021). The impact of social capital on household well-being in Pakistan. Social Indicators Research, 158(3), 927–946. https://doi.org/10.1007/s11205-021-02717-4
Rosenbaum, P. R., & Rubin, D. B. (1983). The central role of the propensity score in observational studies for causal effects. Biometrika, 70(1), 41–55. https://doi.org/10.1093/biomet/70.1.41
Strauss, J., Witoelar, F., & Sikoki, B. (2016). The fifth wave of the Indonesia Family Life Survey: Overview and field report. RAND Corporation.
Suryahadi, A., Rishanty, A., & Sparrow, R. (2024). Social capital and economic development in a large and multi-ethnic developing country: Evidence from Indonesia. Asian Development Review, 41(2), 301–323. https://doi.org/10.1142/S0116110524500082
Yasa, I. G. W. M., & Wijaya, I. W. T. S. (2025). Pengaruh tingkat pendidikan, status pekerjaan, jumlah anggota keluarga terhadap pendapatan keluarga dan konsumsi penerima bantuan langsung tunai dana desa di Kabupaten Klungkung. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 13(9), 662–671. https://doi.org/10.24843/EEP.2024.v13.i09.p04
