Social Trust and Demand for Redistribution. Is There a Crowding out Effect?

The debate about the relationship between social capital the welfare state has produced contradictory results for a long time. The crowding out hypothesis states that the growth of the welfare state would erode social capital, as the action of the state leave no room for non-regulated spontaneous cooperation. In sharp contrast, the crowding in hypothesis states that there is virtuous circle between the size of the welfare state and the stock of social capital in a particular country, since generous welfare states (specially those relying on universalistic programs) will produce a particular sense of fairness and solidarity toward fellow citizens. Yet, the empirical evidence testing the explanatory power of these theories is mostly inconclusive. To further our knowledge of this puzzle, in this paper I focus specifically on the relationship between social trust and preferences for redistribution at the individual level in a sample of European countries belonging to different welfare state regimes.

Entrepreneurship. Context matters: Matters in context

Context has been recognized as shaping entrepreneurship. However, much less has been said about the interplay between entrepreneurship and social context and how entrepreneurship may actually shape context. Through looking at current and ongoing work, this presentation characterizes entrepreneurship as a contextual event. In doing so, it draws on the ideas of embeddedness, social capital, social bonds and social networks to show that relationships play meaningful roles in the entrepreneurial process. Insight is presented about the role of such relationships and how those that exist between entrepreneurs and the communities with whom they engage can influence practice and outcomes. The argument is also made that entrepreneurship is both shaped and influenced by context, and that it is therefore critical to look at entrepreneurial matters in their context.