Time Banking and Social Capital Creation: a Transaction Data Analysis

Abstract

This article uses transaction data from time banks to analyze their potential to generate bonding and bridging social capital among members, emphasizing community engagement and contributing to the circular economy. It also indirectly investigates members’ motivations to engage in time banks. Regarding bonding social capital, the findings are in line with the related literature in terms of the average number of trading partners and the ego-network density. However, reciprocity is a more frequent behavior in our data than in other time banks from other countries. With respect to bridging social capital and considering different age groups, the results show slight evidence of homophilic behavior, although intergenerational transactions are also present, being more frequent between closer age groups. Finally, regarding members’ motivations to participate in time banks, the analysis suggests that young people seem to be more driven by ideological reasons while the elderly members seem more motivated by economic reasons.

Keywords

• Bonding social capital
• Bridging social capital
• Community currency
• Time banks
• Informal economy