INDEKS MODAL SOSIAL DAN AGIHAN PENDAPATAN DI MALAYSIA

The objective of this paper is to analyse the influence of social capital on household income distribution. Advocates of this subjective and intagible capital have recognised it as “relational embeddedness” that facilitates cooperation between individuals or groups to achieve certain objectives. Achieving the objectives of that particular relation will be furnished by the combination of trust, networks, and norms, i.e. elements of social capital. The analysis was based on data collected from a fi eld survey on 4003 households conducted in Peninsular Malaysia in 2007/2008. Using the specified model with household income percentage as the measurement of income distribution and by forming the social capital index, this study estimated the infl uence of social capital variables, such as good relationship among family members, neighbours, and friends; involvement in association; and good norms on income distribution. Human capital variables such as the level of education, training and healthcare, and demografics was also included in this estimation. We hypothesised that social capital variables will generate a positive impact on household income distribution although its infl uence is lower compared to human capital.