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Social capital and political institutions: Evidence that democracy fosters trust

  • Ljunge, Martin

This paper finds evidence that more democratic political institutions increase trust. Second generation immigrants with ancestries from 115 countries are studied within 30 European countries. Comparing individuals born and residing in the same country, those whose father was born in a more democratic country express higher trust than those whose father was born in a less democratic country. The results are robust to individual, parental, and ancestral country controls.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 122 (2014)
Issue (Month): 1 ()
Pages: 44-49

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Handle: RePEc:eee:ecolet:v:122:y:2014:i:1:p:44-49
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  1. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-92, December.
  2. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-77, January.
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  4. Johnson, Noel D. & Mislin, Alexandra, 2012. "How much should we trust the World Values Survey trust question?," Economics Letters, Elsevier, vol. 116(2), pages 210-212.
  5. Louis Putterman & David N. Weil, 2008. "Post-1500 Population Flows and the Long Run Determinants of Economic Growth and Inequality," NBER Working Papers 14448, National Bureau of Economic Research, Inc.
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  8. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Long Term Persistence," Economics Working Papers ECO2008/30, European University Institute.
  9. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
  10. Ljunge, Martin, 2012. "Trust Issues: Evidence from Second Generation Immigrants," Working Paper Series 946, Research Institute of Industrial Economics.
  11. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
  12. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 677-716, 06.
  13. Fernández, Raquel, 2010. "Does Culture Matter?," CEPR Discussion Papers 7965, C.E.P.R. Discussion Papers.
  14. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
  15. Ljunge, Martin, 2012. "Cultural transmission of civicness," Economics Letters, Elsevier, vol. 117(1), pages 291-294.
  16. Paola Sapienza & Luigi Zingales & Luigi Guiso, 2006. "Does Culture Affect Economic Outcomes?," NBER Working Papers 11999, National Bureau of Economic Research, Inc.
  17. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
  18. Raquel Fernández, 2010. "Does Culture Matter?," NBER Working Papers 16277, National Bureau of Economic Research, Inc.
  19. Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Working Paper Series 2005:2, Uppsala University, Department of Economics.
  20. Fernández, Raquel, 2010. "Does Culture Matter?," IZA Discussion Papers 5122, Institute for the Study of Labor (IZA).
  21. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
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