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Crime and Erosion of Trust: Evidence for Latin America

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  • Corbacho, Ana
  • Philipp, Julia
  • Ruiz-Vega, Mauricio

Abstract

Crime has tangible economic costs. It also has less understood and likely sizable intangible costs. In particular, widespread crime has the potential to weaken trust between citizens and institutions, undermine government reform efforts, and become an obstacle to development. Yet, the impact of crime on trust remains relatively unexplored in the literature. This paper analyzes the potential interrelationship between individual victimization and several measures of trust, including trust in formal public institutions and trust in informal private networks. It is based on a representative sample of individuals in 19 countries in Latin America. The empirical strategy is intended to mitigate overt biases and assess sensitivity to hidden biases. The results show that victimization has a substantial negative effect on trust in the local police but no robust effect on informal institutions. Governments may henceforth need to redouble efforts to reduce victimization and the resulting erosion of trust in public institutions.

Suggested Citation

  • Corbacho, Ana & Philipp, Julia & Ruiz-Vega, Mauricio, 2012. "Crime and Erosion of Trust: Evidence for Latin America," IDB Publications (Working Papers) 4058, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:4058
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    File URL: https://publications.iadb.org/publications/english/document/Crime-and-Erosion-of-Trust-Evidence-for-Latin-America.pdf
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    References listed on IDEAS

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    1. Michael Jacobs & William D. Savedoff, 1999. "There's More Than One Way to Get a House: Housing Strategies in Panama," IDB Publications (Working Papers) 6811, Inter-American Development Bank.
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    Cited by:

    1. Gałuszka Jakub, 2012. "Housing provision and improvement programmes for low income populations in the developing world. A review of approaches and their significance in the European context," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 18(18), pages 29-38, November.

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    More about this item

    Keywords

    Crime; Beliefs; Trust; Social Capital; Welfare;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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