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Social Capital and Job Creation in Rural Europe

This research project examines the link between social capital and economic development in rural areas of Europe and the role it plays in job creation. It aims to identify examples of successful initiatives and provide policy recommendations at local, national, and EU levels. The data from a representative household survey conducted in EU countries, including new Member States, will be analyzed to understand the impact of social networks and community engagement on job opportunities in rural areas.

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Social Capital and Job Creation in Rural Europe

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  1. Quality of Lifein Rural Europe 2 June 2006 Henrik Litske Research Manager European Foundation for the Improvement of Living and Working Conditions

  2. Survey methodology • Representative household survey • Interviews in Spring 2003 • Coverage: EU countries including 10 new Member States; 3 candidate countries (Bulgaria, Romania, Turkey) • Sample size: 600 – 1000 people • Response rate: 58%

  3. Analytical reports 2006: Monitoring • Quality of work and life • Urban/rural differences(Professor Mark Shucksmith, University of Newcastle, UK) • Participation in civil society • Time use over the life course

  4. Where people live RURAL URBAN

  5. The people who live in rural Europe In comparison with urban residents they are: • Older, retired • Less likely to have a university education • More likely to be married/living with partner • Likely to have more children

  6. Poverty Indicator: Cannot afford to have friends/ family for a drink or meal at least once a month

  7. Did not use internet over the past month

  8. Social Capital Indicator: Served on a committee or did voluntary work

  9. Shucksmith / Analytical report Country clusters: • EU 12 – High income • EU 7 – Intermediate income • EU 6 – Low income • CC 3 • The poorer the country, the bigger the differences between rural and urban areas • More spending on broad rural development, targeted at poorer rural areas of the EU

  10. Promoting job creation through social capital in rural areas in Europe

  11. Working definition ‘Social capital’ is understood as interaction of individuals within formal networks • Social trust • Communication • Participation • Cultural dimension

  12. Belonging to networks Increases: Individual knowledge Employability Creativity Innovation Locally: Stimulates entrepreneurship, economic growth, employment and social cohesion

  13. Objectives of project • To document the evidence that the level of social capital affects economic development and job creation across rural areas; and that increasing social capital is associated with job creation; • To identify examples of how local and regional authorities, social partner initiatives and NGOs in rural communities have developed services, networks or facilities to create social capital and job creation, paying particular attention to the new Member States; • To develop research-based recommendations for policy-making at local, national, and in particular, EU level. • Minimum of three EU15 Member States, three new Member States, plus Bulgaria and Romania

  14. Next steps 2006-2007 • Contract in June 2006 • First draft report should be available by 16 November 2006 • Final report should be available by 26 March 2007 • Preparation of a high-profile policy conference, possibly with LEADER+ Observatory, in September 2007

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