International Journal of Economics Development Research (IJEDR)
Vol. 7 No. 1 (2026): International Journal of Economics Development Research (IJEDR)

The Impact of Social Capital on Household Welfare in Indonesia Using the Propensity Score Matching Method

Rasyid, Mohtar (Unknown)
Yulinda, Vinda (Unknown)



Article Info

Publish Date
09 Mar 2026

Abstract

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

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...