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Parental divorce and other determinants of interpersonal trust: Evidence from HILDA panel data

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  • Tarja Viitanen

    (University of Otago)

Abstract

This paper examines the determinants of interpersonal trust with an emphasis on parental divorce using Australian HILDA panel data. The dependent variable is composed of answers to the statement: ‘Generally speaking, most people can be trusted’. The analysis is conducted using random effects ordered probit and correlated random effects ordered probit. Mother’s higher education is a strong positive determinant for trust for daughters while father’s education matters for sons. A working father when the respondent was age 14 is a strong positive determinant for both men and women. An immigrant mother is a negative determinant of trust for both men and women. Residential stability has a strong positive effect for men’s interpersonal trust. The results also indicate that there is some correlation between the level of interpersonal trust and parental divorce for both men and women. However, the effect is not strong enough for the ‘divorce revolution’ to account for the overall lower societal trust in Australia.

Suggested Citation

  • Tarja Viitanen, 2014. "Parental divorce and other determinants of interpersonal trust: Evidence from HILDA panel data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(1), pages 35-53.
    • Handle: RePEc:ozl:journl:v:16:y:2014:i:1:p:35-53
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    Cited by:

    1. Bilson, Jessica R. & Jetter, Michael & Kristoffersen, Ingebjørg, 2017. "Gender Differences in the Link between Income and Trust Levels: Evidence from Longitudinal Data," IZA Discussion Papers 10585, Institute of Labor Economics (IZA).
    2. Dahmann, Sarah C. & Kettlewell, Nathan & Lam, Jack, 2022. "Parental Separation and the Formation of Economic Preferences," IZA Discussion Papers 14993, Institute of Labor Economics (IZA).
    3. Viitanen, Tarja K., 2014. "The divorce revolution and generalized trust: Evidence from the United States 1973–2010," International Review of Law and Economics, Elsevier, vol. 38(C), pages 25-32.

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    More about this item

    Keywords

    Parental divorce; Interpersonal trust; HILDA; Random effects ordered probit;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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