Spatial segregation and labour market opportunities in Santiago, Chile: the role of social capital.

Abstract

By bridging the literature on neighbourhood effects and social capital, this study investigates the role of individual-level access to social capital in the relationship between the urban structure and labour market outcomes in Santiago, Chile. The analysis uses georeferenced data and individual information from a representative survey of 534 employed residents in the Greater Area of Metropolitan Santiago. Linear regression models and mediation analyses show that individual-level access to social capital mediates between the urban structure of Santiago and two measures of status attainment in the labour market, namely job prestige and employment income. Particularly in more privileged neighbourhoods, the social network’s status is a relevant mechanism for accessing more prestigious occupations, which in turn influences earning higher salaries. Although the evidence does not support the mediation role of network size, this dimension of social capital is a robust determinant of employment income, even when controlling for individual characteristics. These findings imply that the social isolation of affluent groups reinforces their socioeconomic advantages in the labour market through social capital, while residents of deprived areas face greater barriers in accessing and mobilising social resources.