The paper develops a simple model to examine how social trust might affect the growth of schooling through lowering transaction costs associated with employing educated individuals. In a sample of 52 countries, the paper thereafter provides empirical evidence that trust has led to faster growth of schooling in the period 1960-2000. The findings are robust to the inclusion of a set of control variables and being estimated using an instrumental variables approach.
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Volume (Year): 28 (2009) Issue (Month): 2 (April) Pages: 249-257 Download reference. The following formats are available: HTML
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