Trust, membership in groups, and household welfare
This paper explores the relationship between group membership and trust. Specifically, the authors examine (1) the importance of trust in the decision to join groups, (2) the subsequent ability of groups to generate trust, and (3) the influence of group membership and trust on a measure of well-being, per capita household income. They use longitudinal data from KwaZulu-Natal Province, South Africa, allowing them to control for potential simultaneity and measurement-error problems in the estimation. They disaggregate groups into financial and nonfinancial and “trust in people” by type of agent or actor. They can thus examine whether different types of trust are important for participating in different types of groups and whether different types of group participation are important for generating different types of trust. The research finds that (1) trust in local agents is an important determinant of membership in financial groups but not for membership in nonfinancial groups, (2) membership in both types of groups generates trust in nonlocal agents but not local agents, and (3) membership in financial and nonfinancial groups leads to higher well-being. The first two results suggest that financial groups serve a role in expanding the radius of trust, while the first and third results suggest a role for trust in improving well-being.
|Date of creation:||2002|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John A. Maluccio, 2004. "Using Quality of Interview Information to Assess Nonrandom Attrition Bias in Developing-Country Panel Data," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 91-109, 02.
- Julian May & Michael Carter & Lawrence Haddad & John Maluccio, 2000. "KwaZulu-Natal Income Dynamics Study (KIDS) 1993-98: A longitudinal household database for South African policy analysis," Development Southern Africa, Taylor & Francis Journals, vol. 17(4), pages 567-581.
- Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000.
4481497, Harvard University Department of Economics.
- La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
- Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
- La Ferrara, Eliana, 2002.
"Inequality and group participation: theory and evidence from rural Tanzania,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 235-273, August.
- Eliana La Ferrara, "undated". "Inequality and Group Participation: Theory and Evidence from Rural Tanzania," Working Papers 161, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Eliana La Ferrara, 2000. "Inequality and Group Participation: Theory and Evidence from Rural Tanzania," Development Working Papers 138, Centro Studi Luca d'Agliano, University of Milano.
- La Ferrara, Eliana, 2000. "Inequality And Group Participation: Theory And Evidence From Rural Tanzania," CEPR Discussion Papers 2433, C.E.P.R. Discussion Papers.
- Francis Fukuyama, 2000. "Social Capital and Civil Society," IMF Working Papers 00/74, International Monetary Fund.
- Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, World Bank Group, vol. 15(2), pages 225-249, August.
- 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.
- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2001.
"The Economic Approach to Social Capital,"
Harvard Institute of Economic Research Working Papers
1916, Harvard - Institute of Economic Research.
- Bebbington, Anthony, 1999. "Capitals and Capabilities: A Framework for Analyzing Peasant Viability, Rural Livelihoods and Poverty," World Development, Elsevier, vol. 27(12), pages 2021-2044, December.
- Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 847-904.
- Fafchamps, Marcel, 2000. "Ethnicity and credit in African manufacturing," Journal of Development Economics, Elsevier, vol. 61(1), pages 205-235, February.
- Alberto Alesina & Eliana La Ferrara, "undated".
"Participation in Heterogeneous Communities,"
151, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
- Barr, Abigail, 2000. "Social Capital and Technical Information Flows in the Ghanaian Manufacturing Sector," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 539-559, July.
- Wydick, Bruce, 1999. "Can Social Cohesion Be Harnessed to Repair Market Failures? Evidence from Group Lending in Guatemala," Economic Journal, Royal Economic Society, vol. 109(457), pages 463-75, July.
- Zeller, Manfred, 1998. "Determinants of Repayment Performance in Credit Groups: The Role of Program Design, Intragroup Risk Pooling, and Social Cohesion," Economic Development and Cultural Change, University of Chicago Press, vol. 46(3), pages 599-620, April.
When requesting a correction, please mention this item's handle: RePEc:fpr:fcnddp:135. 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: ()
If references are entirely missing, you can add them using this form.