Trust, Inequality and Ethnic Heterogeneity

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Trust, Inequality and Ethnic Heterogeneity

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ANDREW LEIGH

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Andrew Keith Leigh

Abstract

Using a large Australian social survey, combined with precise data on neighbourhood characteristics, I explore the factors that affect trust at a local level ('localised trust') and at a national level ('generalised trust'). Trust is positively associated with the respondent's education, and negatively associated with the amount of time spent commuting. At a neighbourhood level, trust is higher in affluent areas, and lower in ethnically and linguistically heterogeneous communities, with the effect being stronger for linguistic heterogeneity than ethnic heterogeneity. Linguistic heterogeneity reduces localised trust for both natives and immigrants, and reduces generalised trust only for immigrants. Instrumental variables specifications show similar results. In contrast to the USA, there is no apparent relationship between trust and inequality across neighbourhoods in Australia. Copyright © 2006 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 82 (2006)
Issue (Month): 258 (09)
Pages: 268-280
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Handle: RePEc:bla:ecorec:v:82:y:2006:i:258:p:268-280

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Paper
- Andrew Leigh, 2006. "Trust, Inequality, and Ethnic Heterogeneity," CEPR Discussion Papers 511, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]

References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Jeffrey Milyo & Jennifer M. Mellor & Lisa R. Anderson, 2005. "An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior," Working Papers 0502, Department of Economics, University of Missouri. [Downloadable!]
Other versions:
- Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2005. "An Experimental Study of the Effects of Inequality and Relative Deprivation on Trusting Behavior," Working Papers 14, Department of Economics, College of William and Mary. [Downloadable!]
Jordahl, Henrik, 2007. "Inequality and Trust," Working Paper Series 715, Research Institute of Industrial Economics. [Downloadable!]
D'Angelo, Emanuela & Lilla, Marco, 2007. "Is there more than one linkage between Social Network and Inequality?," IRISS Working Paper Series 2007-12, IRISS at CEPS/INSTEAD. [Downloadable!]
Jeremy Clark & Bonggeun Kim, 2009. "The effect of social diversity on volunteering: Evidence from New Zealand," Working Papers in Economics 09/09, University of Canterbury, Department of Economics. [Downloadable!]
Eric M. Uslaner, 2006. "Does Diversity Drive Down Trust?," Working Papers 2006.69, Fondazione Eni Enrico Mattei. [Downloadable!]
Eiji Yamamura, 2008. "Determinants of trust in a racially homogeneous society," Economics Bulletin, Economics Bulletin, vol. 26(1), pages 1-9. [Downloadable!]

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