HOME 정보검색 검색결과상세정보

Structural Change and Economic Dynamics
ISSN : 0954-349X

When sociable workers pay off: Can firms internalize social capital externalities?


Alexandra Ferreira-Lopes | Instituto Universitario de Lisboa (ISCTE ? IUL)

Vol.23 No.2 , pp.127 ~ 136


We use an endogenous growth model to contrast the socially optimal allocation of human capital with the decentralized solution, in a context where workers make the choices that determine social capital accumulation. As social capital is expected to increase productivity but is not traded in markets, a positive social capital externality is identified. We discuss the possibility that, in response to this externality, firms subsidize social capital accumulation activities, incurring into additional costs that are recouped through productivity gains. This reaction by firms may be seen as a justification for some corporate social responsibility actions targeted at workers, although a full internalization of the externality does not look achievable in practice.


  • L. Arnold (2000) , Endogenous growth with physical capital, human capital and product variety: a comment , European Economic Review , VOL.44 , pp.1599 ~ 1605
  • D. Baron (2008) , Managerial contracting and corporate social responsibility , Journal of Public Economics , VOL.92 , pp.268 ~ 288
  • T. Besley | M. Ghatak (2007) , Retailing public goods: the economics of corporate social responsibility , Journal of Public Economics , VOL.91 , pp.1645 ~ 1663