Support Or Barrier? The Impacts of Social Capital Stock on Low-Income Family in Shenzhen

Abstract

In contemporary society, low-income households frequently face barriers in accessing education, healthcare, or stable employment, with social relationships exerting complex influences on their situation. This paper centres on the core issue of how social capital endowment affects low-income households, analysing both its supportive functions and detrimental effects. This research employs a social capital theoretical framework and literature review methodology, selecting Shenzhen in Guangdong province, China as the case study. By reviewing classical theories, recent empirical research, and public policy, this study reveals in depth the functional role of social capital endowment for low-income households. Specifically, social capital can promote children's education, provide employment opportunities, ensure daily care, and offer microloans. Simultaneously, it creates exclusivity, solidifies entrenched interests, and perpetuates intergenerational poverty. The specific impacts depend on how open the social networks are, whether trust extends beyond consanguinity, and whether reciprocity scales from the household to the community and institutions. Policy that widens bridging and linking ties, and reduces economic or status-based advantages, can turn social capital from a barrier into a support. The paper adds a city-level view of how social capital interacts with institutions. It helps design fairer policies of education, housing, and welfare systems that guide positive social capital and limit harms.