Social Capital and Gambling: Evidence from Australia
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The prevalence of problem gambling in many countries necessitates research that examines factors influencing excessive and addictive consumption. We consider how social capital impacts gambling participation for a large representative sample of the Australian population. Specifically, we examine the association between social capital and gambling addiction using data from the Household, Income and Labour Dynamics in Australia survey. We address the endogeneity of social capital by instrumenting for social capital using an urban/rural reversed measure of ethnic diversity. Our main findings suggest that higher levels of social capital are associated with lower gambling risks measured by the Problem Gambling Severity Index. This general finding is robust to alternative ways of measuring social capital and gambling, and alternative estimation approaches. We also find that the effect of social capital is stronger in the case of problem gamblers compared to gamblers in other risk categories.
KeywordsGambling PGSI Social capital Social cohesion
Compliance with Ethical Standards
Conflict of interest
Awaworyi Churchill declares that he has no conflict of interest. Farrell declares that she has no conflict of interest.
This article does not contain any studies with human participants or animals performed by any of the authors.
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