ABSTRACT
Some people enjoy higher incomes than others. Some are promoted faster. Some are leaders on more important projects. The human capital explanation is that inequality results from differences in individual ability. Structural hole theory gives concrete meaning to the concept of social capital. The theory describes how social capital is a function of brokerage opportunities in a network. A manager's network provides access to information well beyond what he or she could process alone. It provides that information early, which is an advantage to the manager acting on the information. Nonredundant contacts offer information benefits that are additive rather than redundant. Structural holes are the gaps between non-redundant contacts. Information benefits in this example are enhanced in several ways. The volume is higher in Robert's network simply because he reaches more people indirectly. Also, the diversity of his contacts means that the quality of his information benefits is higher.
