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What is Social Capital? The Determinants of Trust and Trustworthiness

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Author Info
Edward L. Glaeser
David Laibson
Jose A. Scheinkman
Christine L. Soutter

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Abstract

Using a sample of Harvard undergraduates, we analyze trust and social capital in two experiments. Trusting behavior and trustworthiness rise with social connection; differences in race and nationality reduce the level of trustworthiness. Certain individuals appear to be persistently more trusting, but these people do not say they are more trusting in surveys. Survey questions about trust predict trustworthiness not trust. Only children are less trustworthy. People behave in a more trustworthy manner towards high status individuals, and therefore status increases earnings in the experiment. As such, high status persons can be said to have more social capital.

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Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number 1875.

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Date of creation: 1999
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Handle: RePEc:fth:harver:1875

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  1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
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  2. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May. [Downloadable!] (restricted)
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  3. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June. [Downloadable!] (restricted)
  4. Andrei Shleifer & Lawrence H. Summers, 1989. "Breach of Trust in Hostile Takeovers," NBER Working Papers 2342, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Sheryl Ball & Catherine Eckel & Philip J. Grossman & William Zame, 2001. "Status In Markets," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 161-188, February. [Downloadable!] (restricted)
  6. Abreu, Dilip, 1988. "On the Theory of Infinitely Repeated Games with Discounting," Econometrica, Econometric Society, vol. 56(2), pages 383-96, March. [Downloadable!] (restricted)
  7. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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  9. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  10. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March. [Downloadable!] (restricted)
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  11. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
  12. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
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  1. Lederman, Daniel, 2002. "Income, wealth, and socialization in Argentina : provocative responses from individuals," Policy Research Working Paper Series 2821, The World Bank. [Downloadable!]
  2. Daniel Lederman, 2005. "Income Wealth, and Socialization in Argentina," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 3-30. [Downloadable!]
  3. Derek C. Jones & Takao Kato, 2007. "The Impact of Teams on Output, Quality and Downtime: An Empirical Analysis Using Individual Panel Data," IZA Discussion Papers 2917, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Arturo Galindo & Alberto Chong & César Calderón, 2001. "Estructura y desarrollo de instituciones financieras y su relación con la confianza: elementos de juicio de varios países," RES Working Papers 4252, Inter-American Development Bank, Research Department. [Downloadable!]
  5. José Atilano Pena López & José Manuel Sánchez Santos, 2007. "The Olson - Putnam Controversy: Some Empirical Evidence," Economics Bulletin, Economics Bulletin, vol. 26(4), pages 1-10. [Downloadable!]
  6. repec:att:wimass:1920029 is not listed on IDEAS
  7. Jan Eeckhout, . "Competing Norms of Cooperation," Penn CARESS Working Papers fa8d3cedc3b97259070110325, Penn Economics Department. [Downloadable!]
  8. Angelo Antoci & Pier Luigi Sacco & Paolo Vanin, 2001. "Economic Growth and Social Poverty: The Evolution of Social Participation," Bonn Econ Discussion Papers bgse13_2001, University of Bonn, Germany. [Downloadable!]
  9. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2000. "The Role of Social Capital In Financial Development," CEPR Discussion Papers 2383, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  10. Jeff Carpenter & Juan Camilio Cardenas, 2002. "Using Cross-Cultural Experiments to Understand the Dynamics of a Global Commons," Artefactual Field Experiments 0029, The Field Experiments Website. [Downloadable!]
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  11. Holm, Håkan & Nystedt, Paul, 2002. "Intra-Generational Trust - a Semi-Experimental Study of Trust Among Different Generations," Working Papers 2002:16, Lund University, Department of Economics.
  12. Herbert Gintis, 2001. "The Hitchhiker's Guide to Altruism: Gene-Culture Coevolution, and the Internalization of Norms," Working Papers 01-10-058, Santa Fe Institute.
  13. Gradstein, Mark & Justman, Moshe, 2001. "Education, Social Cohesion and Economic Growth," CEPR Discussion Papers 2773, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Jan Eeckhout, 2000. "Competing Norms of Cooperation," Econometric Society World Congress 2000 Contributed Papers 0559, Econometric Society. [Downloadable!]
  15. Derek C. Jones & Takao Kato, 2003. "The Effect of Employee Involvment on Firm Performance: Evidence from an Econometric Case Study," William Davidson Institute Working Papers Series 2003-612, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  16. Alberto Alesina & Eliana La Ferrara, . "Participation in Heterogeneous Communities," Working Papers 151, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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  17. Galassi, F.L., 2000. "Measuring Social Capital: Culture as an Explanation of Italy's Economic Dualism," The Warwick Economics Research Paper Series (TWERPS) 553, University of Warwick, Department of Economics. [Downloadable!]
  18. Arturo Galindo & Alberto Chong & César Calderón, 2001. "Structure and Development of Financial Institutions and Links with Trust: Cross-Country Evidence," RES Working Papers 4251, Inter-American Development Bank, Research Department. [Downloadable!]
  19. Sean Durkin, . "Measuring Social Capital and Its Economic Impact," University of Chicago - Population Research Center 2000-04, Chicago - Population Research Center. [Downloadable!]
  20. James Habyarimana & Macartan Humphreys & Daniel N. Posner & Jeremy Weinstein, 2006. "Why Does Ethnic Diversity Undermine Public Goods Provision? An Experimental Approach," IZA Discussion Papers 2272, Institute for the Study of Labor (IZA). [Downloadable!]
  21. John T. Durkin, Jr., 2001. "Measuring Social Capital and its Economic Impact," Working Papers 0102, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
  22. Colin Camerer & Ernst Fehr, 2003. "Measuring social norms and preferences using experimental games: A guide for social scientists," Levine's Bibliography 506439000000000501, UCLA Department of Economics. [Downloadable!]
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