Endogenous social capital and self-rated health: Results from Canada's General Social Survey

In this study we analyze data from Statistics Canada's General Social Survey, a cross-sectional and nationally representative survey of Canada's population, to assess the impact of three dimensions of social capital on self-rated health. We measure these dimensions, which consist of social networks and social support, civic participation and social participation, with a comprehensive set of 5 indicators. To avoid reverse causality due to the cross-sectional nature of the data, we employ an instrumental variable simultaneous equations bivariate probit regression model. Our findings indicate that all of the tested dimensions of social capital have a positive and significant impact on self-rated health. These findings suggest that social capital plays an important role in enhancing the health of Canada's population. Endogeneity was detected in all of our estimations. Consequently, this study also has important methodological implications in that we demonstrate that relying solely on naive estimations leads to biased results.