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Does Equality Lead to Fraternity?

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Author Info
Andrew Leigh () (SPEAR Centre, RSSS, ANU)

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Abstract

Several cross-country studies have observed a negative correlation between inequality and interpersonal trust. Using data from 59 countries, I instrument for inequality using the relative size of the mature-aged cohort, and find that a rise in inequality reduces trust.

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File URL: http://econrsss.anu.edu.au/pdf/DP513.pdf
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Publisher Info
Paper provided by Centre for Economic Policy Research, Research School of Social Sciences, Australian National University in its series CEPR Discussion Papers with number 513.

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Length: 13 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:auu:dpaper:513

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Web page: http://econrsss.anu.edu.au/
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Related research
Keywords: Trust inequality ethnic fractionalization instrumental variables

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Find related papers by JEL classification:
D3 - Microeconomics - - Distribution
D7 - Microeconomics - - Analysis of Collective Decision-Making

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  1. 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:
  2. Jordahl, Henrik, 2007. "Inequality and Trust," Working Paper Series 715, Research Institute of Industrial Economics. [Downloadable!]
  3. 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!]
    Other versions:
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