Using prefecture level data of Japan for the years 1979 and 1996, I explore the extent to which inequality, age heterogeneity, and social capital have an effect upon interpersonal trust. The major finding is that inequality is associated with low trust, while generational heterogeneity is associated with high trust. However, this tendency is not observed when the sample includes female respondents only. These results are not changed when I instrument for inequality using the relative size of the mature-aged cohort.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: Z1 - Other Special Topics - - Cultural Economics Z0 - Other Special Topics - - General
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Alesina, Alberto & La Ferrara, Eliana, 2002.
"Who trusts others?,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 207-234, August.
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Andrew Leigh, 2006.
"Does Equality Lead to Fraternity?,"
CEPR Discussion Papers
513, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University.
[Downloadable!]
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