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Social Welfare Programs and Trust: Evidence from Six Latin American Cities
[“Decomposing Trust and Trustworthiness,”]

Author

Listed:
  • Alberto Chong
  • Vanessa Ríos-Salas
  • Hugo Ñopo

Abstract

Using individual-level data that are representative at the city level for six Latin American capital cities (Bogota, Buenos Aires, Caracas, Lima, Montevideo, and San José), we find that participation in government social welfare programs is negatively associated to trust, a result that is robust to the inclusion of individual risk measures and a broad array of controls. Our findings support the notion that low take-up rates may be linked to stigma and not to high transaction costs as commonly suggested (JEL D01, O12, O10).

Suggested Citation

  • Alberto Chong & Vanessa Ríos-Salas & Hugo Ñopo, 2020. "Social Welfare Programs and Trust: Evidence from Six Latin American Cities [“Decomposing Trust and Trustworthiness,”]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 36(2), pages 255-283.
    • Handle: RePEc:oup:jleorg:v:36:y:2020:i:2:p:255-283.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewz018
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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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