Does Social Capital Determine Household Welfare? An Investigation into the Situation in Sokoto Metropolis

Abstract

This study examines the influence of social capital on household welfare in Sokoto metropolis, Nigeria. To achieve this objective, cross-sectional dataset was collected using a structured questionnaire. Ten households were selected randomly from each of the 23 Wards in the study area using probability sampling method in form of simple random sampling technique, covering a total number of 230 households. The dataset was analyzed using Robust Ordinary Least Squares Regression and Logistic regression with robust standard errors. The findings revealed that among the seven proxies for social capital identified in this study, three are significant and negatively related to household welfare. We therefore conclude that social capital does not enhance welfare in the metropolis but rather reduces it. The implication of these findings is that engagement of households in the three measures of social capital will reduce household welfare among households in Sokoto metropolis. The study therefore recommends that, households in Sokoto metropolis should engage in some other social capital activities other than the ones that have negative influence on their welfare. But some of the control variables have significant impacts on a household’s welfare in the metropolis