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Impersonal Trust in a Just and Unjust World: Evidence from an Educational Intervention

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  • Alan, Sule
  • Kubilay, Elif

Abstract

We provide causal evidence on how impersonal trust and reciprocity create prosperity and shape its distribution. For this, we leverage a large-scale randomized educational intervention that boosts trust and reciprocity in children. We show that in a world where individuals trust anonymous others, prosperity grows but so does inequality. While impersonal trust unambiguously creates wealth, redistribution is needed to tame the inequality it brings. Our results suggest that harnessing prosocial psychology through educational actions may pave the way for a prosperous and just society. However, for these actions to ultimately achieve this end, they should be pervasive and universally accessible.

Suggested Citation

  • Alan, Sule & Kubilay, Elif, 2022. "Impersonal Trust in a Just and Unjust World: Evidence from an Educational Intervention," CEPR Discussion Papers 17115, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17115
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    2. Alan, Sule & Turkum, Betul, 2024. "Abstract reasoning, theory of mind and character development in the school," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 307-326.
    3. Chen, Anqi & Li, Yongyou, 2024. "Long-term effects of early-life education intervention on children’s outcomes: Evidence from school consolidation in rural China," Journal of Asian Economics, Elsevier, vol. 93(C).

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    Keywords

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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