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Social Capital and Political Institutions: Evidence that Democracy Fosters Trust

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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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File URL: http://www.ifn.se/wfiles/wp/wp988.pdf
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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 988.

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Length: 12 pages
Date of creation: 18 Nov 2013
Publication status: Published as Ljunge, Martin, 'Social Capital and Political Institutions: Evidence that Democracy Fosters Trust' in Economics Letters, 2014, pages 44-49.
Handle: RePEc:hhs:iuiwop:0988
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  1. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1015-1049.
  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 146-177, January.
  3. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
  4. Louis Putterman & David N. Weil, 2010. "Post-1500 Population Flows and The Long-Run Determinants of Economic Growth and Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1627-1682.
  5. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2008. "Long Term Persistence," CEPR Discussion Papers 6981, C.E.P.R. Discussion Papers.
  6. Yann Algan & Pierre Cahuc & Andrei Shleifer, 2013. "Teaching Practices and Social Capital," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 189-210, July.
  7. 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.
  8. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, 06.
  9. Fernández, Raquel, 2010. "Does Culture Matter?," IZA Discussion Papers 5122, Institute for the Study of Labor (IZA).
  10. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
  11. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, 05.
  12. Ljunge, Martin, 2012. "Cultural transmission of civicness," Economics Letters, Elsevier, vol. 117(1), pages 291-294.
  13. 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.
  14. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
  15. Raquel Fernández, 2010. "Does Culture Matter?," NBER Working Papers 16277, National Bureau of Economic Research, Inc.
  16. Fernández, Raquel, 2010. "Does Culture Matter?," CEPR Discussion Papers 7965, C.E.P.R. Discussion Papers.
  17. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
  18. Martin Ljunge, 2011. "Trust Issues: Evidence from Second Generation Immigrants," Discussion Papers 11-31, University of Copenhagen. Department of Economics.
  19. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
  20. 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.
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