Article ID Journal Published Year Pages File Type
970015 Journal of Public Economics 2008 18 Pages PDF
Abstract

We present new evidence on the influence of income inequality on generalized trust. Using individual panel data from Swedish counties together with an instrumental variable strategy, we find that differences in disposable income, and especially differences among people in the bottom half of the income distribution, are associated with lower trust. The relationship between income inequality and trust is particularly strong for people with a strong aversion against income differentials. We also find that the proportion of people born in a foreign country is negatively associated with trust.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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