On changes in general trust in Europe
AbstractThis paper analyses the determinants of trust in a pool of 33 European countries over the period 2002-2010. We find that income inequality is negatively related with trust when we analyse pooled data of individuals, which is a well established result if one focuses on crosscountry differences. But, this relation vanishes when we estimate a fixed effects model with the data collapsed by country and year. Omitted variables may account for the significant and negative relationship between economic inequality and trust at the cross-sectional level. In contrast, we find a sizeable, negative and significant effect of the share of persons from minority ethnic groups on trust. This result is found in different specifications for the trust index and distribution of trust.
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Bibliographic InfoPaper provided by Geary Institute, University College Dublin in its series Working Papers with number 201301.
Length: 31 pages
Date of creation: 28 Jan 2013
Date of revision:
Trust; Income Inequality; Europe; Social Attitudes;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-03 (All new papers)
- NEP-EUR-2013-02-03 (Microeconomic European Issues)
- NEP-EVO-2013-02-03 (Evolutionary Economics)
- NEP-SOC-2013-02-03 (Social Norms & Social Capital)
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