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Abstract
This study examines the role of groups and networks in helping poor Filipinos
manage their exposure to risks and cope with shocks. It brings together two
strands of literature that examine how social capital affects economic variables and
investigate the processes by which social capital formation, participation in
networks and groups, and trusting behavior comes about. Using a longitudinal
study from a province in Northern Mindanao, Philippines, the authors find that
households belong to a number of formal and informal groups and networks, but
participation differs according to household characteristics. Households belonging to
the lower asset quartiles belong to fewer groups, and households with more human
and physical capital have larger social networks. Furthermore, wealthier households
are more likely to take part in productive groups while membership in civic and
religious groups is not limited by economic status. Migrant networks play an
important risk-smoothing role via remittances sent by migrant daughters.