The two meanings of social capital

The popularity of the concept of social capital has been accompanied by increasing controversy about its actual meaning and effects. I consider here the alternative applications of the concept as an attribute of individuals vs. collectivities and discuss the extent to which causal propositions formulated at each level are logically sound. I present some empirical evidence illustrating the possibility that, despite the current popularity of the concept, much of its alleged benefits may be spurious after controlling for other factors. Implications of this analysis and results for theory and policy are discussed.