Trust and institutions: A multilevel analysis

In this study, we argue that levels of trust are shaped by formal and informal institutions. We discuss statistical test results that support this view. These utilize World Value Survey results and related data sources to examine the ways that institutions and contextual factors affect individuals’ self-reported trust levels. This investigation is the first, to our knowledge, to take into account micro-unit along with macro-unit characteristics to analyze the nature of contextual effects and does so by applying a multilevel regression approach.

► We clarify the meaning and the “multilevel” mechanisms of the trust.
► The multilevel regression method is used to analyze these mechanisms.
► The results indicate that contextual effect matters. The trust can be promoted by higher quality of legal systems.
► The individual-level and group-level effects of the religious denominations on trust are different.
► And the relationship between the individual-level predictors and trust varies significantly from country to country.