IDEAS home Printed from https://ideas.repec.org/a/aeq/aeqsjb/v133_y2013_i2_q2_p335-343.html
   My bibliography  Save this article

Does Trust Pay Off?

Author

Listed:
  • Bliek de, Ruben

Abstract

We exploit a data driven latent class model to classify individuals in two distinct trust classes: one for low, and one for high trust individuals. Subsequently, by entering class membership in a two-wave panel analysis we find that belonging to the high trust class positively influences an individual's economic performance, as measured by individual wage earnings. We show that trust related income differences between and within individuals are robust against endogeneity by suggesting that trust is dependent upon social intelligence. To the best of our knowledge, this is the first time these conclusions have been claimed using micro-level multiple-wave data.

Suggested Citation

  • Bliek de, Ruben, 2013. "Does Trust Pay Off?," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(2), pages 335-343.
  • Handle: RePEc:aeq:aeqsjb:v133_y2013_i2_q2_p335-343
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.3790/schm.133.2.335
    Download Restriction: Access to full text is restricted to subscribers (2008 onwards); Pay-per-view access from http://www.genios.de (2000 onwards with 2 years moving wall) and http://ejournals.duncker-humblot.de/loi/schm (2008 onwards)

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Dolan & Georgios Kavetsos, 2016. "Happy Talk: Mode of Administration Effects on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 17(3), pages 1273-1291, June.
    2. Gabriella Conti & Stephen Pudney, 2011. "Survey Design and the Analysis of Satisfaction," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1087-1093, August.
    3. Ed Diener & Ed Sandvik & William Pavot & Dennis Gallagher, 1991. "Response artifacts in the measurement of subjective well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 24(1), pages 35-56, February.
    4. Ivar Krumpal, 2013. "Determinants of social desirability bias in sensitive surveys: a literature review," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(4), pages 2025-2047, June.
    5. Kassenboehmer, Sonja C. & Haisken-DeNew, John P., 2012. "Heresy or enlightenment? The well-being age U-shape effect is flat," Economics Letters, Elsevier, vol. 117(1), pages 235-238.
    6. Frijters, Paul & Beatton, Tony, 2012. "The mystery of the U-shaped relationship between happiness and age," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 525-542.
    7. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    8. Bert Van Landeghem, 2012. "Panel Conditioning and Self-Reported Satisfaction: Evidence from International Panel Data and Repeated Cross-Sections," SOEPpapers on Multidisciplinary Panel Data Research 484, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Adrian Chadi, 2012. "I would really love to participate in your survey! Bias problems in the measurement of well-being," Economics Bulletin, AccessEcon, vol. 32(4), pages 3111-3119.
    10. Albert Kozma & M. Stones, 1988. "Social desirability in measures of subjective well-being: Age comparisons," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 20(1), pages 1-14, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aeq:aeqsjb:v133_y2013_i2_q2_p335-343. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriele Freudenmann). General contact details of provider: http://www.duncker-humblot.de .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.