Social capital and political institutions: Evidence that democracy fosters trust

- This paper presents evidence that democracy fosters trust.
- Second generation immigrants in Europe with ancestries from 115 countries are studied.
- The results are robust to individual, parental, and ancestral country controls.
- The results suggest that less hierarchical political institutions promote trust.
- The mechanism is that institutions shape beliefs that are diffused across generations.

This paper finds evidence that more democratic political institutions increase trust. Second generation immigrants with ancestries from 115 countries are studied within 30 European countries. Comparing individuals born and residing in the same country, those whose father was born in a more democratic country express higher trust than those whose father was born in a less democratic country. The results are robust to individual, parental, and ancestral country controls.