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Income inequality and social trust

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Listed:
  • Albertazzi, Andrea
  • Lown, Patrick
  • Mengel, Friederike

Abstract

We study how economic inequality affects social trust. We test this relationship both using correlational evidence from a large social survey of British youth as well as novel causal evidence from a series of online experiments. We find causal evidence that higher inequality has a negative impact on social trust. By contrast, a high relative position leads to higher social trust in both samples. In times where inequality is on the rise these findings are cause for concern.

Suggested Citation

  • Albertazzi, Andrea & Lown, Patrick & Mengel, Friederike, 2025. "Income inequality and social trust," Economics Letters, Elsevier, vol. 257(C).
    • Handle: RePEc:eee:ecolet:v:257:y:2025:i:c:s0165176525005129
    DOI: 10.1016/j.econlet.2025.112675
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    References listed on IDEAS

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    1. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 1-41.
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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D30 - Microeconomics - - Distribution - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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