IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v146y2019i3d10.1007_s11205-019-02139-3.html
   My bibliography  Save this article

Does Community Level Trust Improve Self-Rated Welfare?

Author

Listed:
  • Nazim Habibov

    (University of Windsor)

  • Alena Auchynnikava

    (University of Windsor)

  • Rong Luo

    (University of Windsor)

Abstract

Positive outcomes of community social trust include the generation of new employment opportunities; higher levels of support for public welfare, healthcare, and education; better developed democratic administration, and more effective institutions. These outcomes are in turn believed to facilitate the reduction of poverty. As such, this paper analyses the effects of community-level trust on self-rated welfare. Our hypothesis was that higher levels of community trust would lead to higher welfare. We tested this hypothesis on a diverse sample of 27 post-communist countries in Eastern Europe and the former Soviet Union using data from the 2010 and 2016 rounds of the Life-in-Transition survey. Through estimating a series of instrumental variable regressions, we found a significant causal effect of community trust on household welfare in both the total sample and in regional samples. This effect remains robust for: (1) alternative sets of covariates, (2) control for individual-level trust, and (3) an alternative definition of community trust. Thus, the theoretical contribution of this paper is that we have empirically proven that which was assumed by previous studies, namely, that community social trust has a positive causal association with reducing poverty.

Suggested Citation

  • Nazim Habibov & Alena Auchynnikava & Rong Luo, 2019. "Does Community Level Trust Improve Self-Rated Welfare?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 669-697, December.
  • Handle: RePEc:spr:soinre:v:146:y:2019:i:3:d:10.1007_s11205-019-02139-3
    DOI: 10.1007/s11205-019-02139-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-019-02139-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11205-019-02139-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Peter Sanfey & Utku Teksoz, 2007. "Does transition make you happy?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 707-731, October.
    2. Nazim Habibov & Elvin Afandi, 2015. "Pre- and Post-crisis Life-Satisfaction and Social Trust in Transitional Countries: An Initial Assessment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 503-524, April.
    3. Andrés Rodríguez-Pose & Viola Berlepsch, 2014. "Social Capital and Individual Happiness in Europe," Journal of Happiness Studies, Springer, vol. 15(2), pages 357-386, April.
    4. Sergei Guriev & Ekaterina Zhuravskaya, 2009. "(Un)happiness in Transition," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 143-168, Spring.
    5. Andrés Rodríguez-Pose & Kristina Maslauskaite, 2011. "Can policy make us happier? Individual characteristics, socio-economic factors and life satisfaction in Central and Eastern Europe," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 5(1), pages 77-96.
    6. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 123-145, June.
    7. Hayo, Bernd & Seifert, Wolfgang, 2003. "Subjective economic well-being in Eastern Europe," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 329-348, June.
    8. Selezneva, Ekaterina, 2011. "Surveying transitional experience and subjective well-being: Income, work, family," Economic Systems, Elsevier, vol. 35(2), pages 139-157, June.
    9. Karen Siedlecki & Timothy Salthouse & Shigehiro Oishi & Sheena Jeswani, 2014. "The Relationship Between Social Support and Subjective Well-Being Across Age," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(2), pages 561-576, June.
    10. Pamela Abbott & Claire Wallace & Roger Sapsford, 2011. "Surviving the Transformation: Social Quality in Central Asia and the Caucuses," Journal of Happiness Studies, Springer, vol. 12(2), pages 199-223, April.
    11. Alexandru Cojocaru & Mame Fatou Diagne, 2015. "How reliable and consistent are subjective measures of welfare in Europe and Central Asia?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(1), pages 75-103, January.
    12. Adepoju, Adebusola A. & Oni, O. A., 2012. "Investigating Endogeneity Effects of Social Capital on Household Welfare in Nigeria: A Control Function Approach," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(1), pages 1-24, February.
    13. Easterlin, Richard A., 2009. "Lost in transition: Life satisfaction on the road to capitalism," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 130-145, August.
    14. Markus Freitag & Antje Kirchner, 2011. "Social Capital and Unemployment: A Macro‐Quantitative Analysis of the European Regions," Political Studies, Political Studies Association, vol. 59(2), pages 389-410, June.
    15. John Maluccio & Lawrence Haddad & Julian May, 2000. "Social capital and household welfare in South Africa, 1993-98," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 54-81.
    16. Sabatini, Fabio & Sarracino, Francesco & Yamamura, Eiji, 2014. "Social norms on rent seeking and preferences for redistribution," EconStor Preprints 98662, ZBW - Leibniz Information Centre for Economics.
    17. Djankov, Simeon & Nikolova, Elena & Zilinsky, Jan, 2016. "The happiness gap in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 108-124.
    18. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
    19. Nazim Habibov, 2012. "How and Why Determinants of Household Welfare Changed in Azerbaijan During the Transition," Problems of Economic Transition, Taylor & Francis Journals, vol. 54(11), pages 3-52.
    20. Lelkes, Orsolya, 2006. "Tasting freedom: Happiness, religion and economic transition," Journal of Economic Behavior & Organization, Elsevier, vol. 59(2), pages 173-194, February.
    21. Elisabeth King & Cyrus Samii & Birte Snilstveit, 2010. "Interventions to promote social cohesion in sub-Saharan Africa," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(3), pages 336-370.
    22. Anna Mironova, 2015. "Trust as a Factor of Subjective Life Satisfaction," HSE Working papers WP BRP 42/PSY/2015, National Research University Higher School of Economics.
    23. Austin Nichols, 2007. "Causal inference with observational data," Stata Journal, StataCorp LP, vol. 7(4), pages 507-541, December.
    24. Sturgis, Patrick & Patulny, Roger & Allum, Nick & Buscha, Franz, 2012. "Social connectedness and generalized trust: a longitudinal perspective," ISER Working Paper Series 2012-19, Institute for Social and Economic Research.
    25. Daniele, Gianmarco & Geys, Benny, 2015. "Interpersonal trust and welfare state support," European Journal of Political Economy, Elsevier, vol. 39(C), pages 1-12.
    26. Petro, Nicolai N., 2001. "Creating Social Capital in Russia: The Novgorod Model," World Development, Elsevier, vol. 29(2), pages 229-244, February.
    27. Nazim Habibov & Elvin Afandi, 2017. "Community-Level Social Capital and Household Strategies for Coping with Global Crisis in Transitional Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 687-710, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.
    2. Nikolova, Milena, 2016. "Minding the happiness gap: Political institutions and perceived quality of life in transition," European Journal of Political Economy, Elsevier, vol. 45(S), pages 129-148.
    3. Popova, Olga, 2014. "Can religion insure against aggregate shocks to happiness? The case of transition countries," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 804-818.
    4. Habibov, Nazim & Cheung, Alex & Auchynnikava, Alena, 2017. "Does social trust increase willingness to pay taxes to improve public healthcare? Cross-sectional cross-country instrumental variable analysis," Social Science & Medicine, Elsevier, vol. 189(C), pages 25-34.
    5. Selezneva, Ekaterina, 2011. "Surveying transitional experience and subjective well-being: Income, work, family," Economic Systems, Elsevier, vol. 35(2), pages 139-157, June.
    6. Stefano Bartolini & Małgorzata Mikucka & Francesco Sarracino, 2017. "Money, Trust and Happiness in Transition Countries: Evidence from Time Series," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 87-106, January.
    7. Asadullah, M. Niaz & Xiao, Saizi & Yeoh, Emile, 2018. "Subjective well-being in China, 2005–2010: The role of relative income, gender, and location," China Economic Review, Elsevier, vol. 48(C), pages 83-101.
    8. Jiří Večerník & Martina Mysíková, 2014. "(Un)happy transition? Subjective Well-being in European Countries in 1991-2008 and Beyond," WIFO Working Papers 467, WIFO.
    9. Molnár, György & Kapitány, Zsuzsa, 2014. "Miért elégedetlenek annyira a magyarok az életükkel?. A szubjektív jóllétet befolyásoló tényezők mikroszintű összehasonlító elemzése magyar és osztrák adatokon [Why are Hungarians dissatisfied?. A ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 637-671.
    10. Jiří Večerník, 2014. "Subjektivní blahobyt v České republice a střední Evropě: makro- a mikro-determinanty [Subjective Well-Being in the Czech Republic and Central Europe: Macro- and Micro-Determinants]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(2), pages 249-269.
    11. Ekaterina Skoglund, 2017. "The happiness gap between transition and non-transition countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 357-357, May.
    12. Maksym Obrizan, 2020. "Transition welfare gaps: One closed, another to follow?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(4), pages 621-635, October.
    13. Chiara Amini & Elodie Douarin, 2020. "Corruption and Life Satisfaction in Transition: Is Corruption a Social Norm in Eastern Europe?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(2), pages 723-766, September.
    14. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    15. Chiara Amini & Elodie Douarin, 0. "Corruption and Life Satisfaction in Transition: Is Corruption a Social Norm in Eastern Europe?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 0, pages 1-44.
    16. Nazim Habibov & Elvin Afandi, 2017. "Community-Level Social Capital and Household Strategies for Coping with Global Crisis in Transitional Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 687-710, January.
    17. Vedran Recher, 2022. "History Matters: Life Satisfaction in Transition Countries," Journal of Happiness Studies, Springer, vol. 23(1), pages 171-193, January.
    18. Nazim Habibov & Elvin Afandi, 2015. "Pre- and Post-crisis Life-Satisfaction and Social Trust in Transitional Countries: An Initial Assessment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 503-524, April.
    19. Cancho,Cesar A. & Davalos,Maria Eugenia & Sanchez,Carolina, 2015. "Why so gloomy ? perceptions of economic mobility in Europe and Central Asia," Policy Research Working Paper Series 7519, The World Bank.
    20. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, 2016. "Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 881-907, September.

    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:spr:soinre:v:146:y:2019:i:3:d:10.1007_s11205-019-02139-3. 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: . General contact details of provider: http://www.springer.com .

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.