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Social Capital and Political Institutions: Evidence that Democracy Fosters Trust

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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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
Date of revision:
Handle: RePEc:hhs:iuiwop:0988
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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  1. 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.
  2. Guido Tabellini, 2006. "Culture and institutions: economic development in the regions of Europe," Levine's Working Paper Archive 321307000000000241, David K. Levine.
  3. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, MIT Press, vol. 125(3), pages 1015-1049, August.
  4. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2008. "Long Term Persistence," Economics Working Papers ECO2008/30, European University Institute.
  5. Fernández, Raquel, 2010. "Does Culture Matter?," IZA Discussion Papers 5122, Institute for the Study of Labor (IZA).
  6. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-92, December.
  7. Ljunge, Martin, 2012. "Trust Issues: Evidence from Second Generation Immigrants," Working Paper Series 946, Research Institute of Industrial Economics.
  8. 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 146-77, January.
  9. Bisin, A. & Verdier, T., 1997. "The Economics of Cultural Transmission and the Dynamics of Preferences," DELTA Working Papers 97-03, DELTA (Ecole normale supérieure).
  10. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, 05.
  11. Yann Algan & Pierre Cahuc & Andrei Shleifer, 2011. "Teaching Practices and Social Capital," NBER Working Papers 17527, National Bureau of Economic Research, Inc.
  12. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.
  13. Martin Ljunge, 2012. "Cultural Transmission of Civicness," Discussion Papers 11-33, University of Copenhagen. Department of Economics.
  14. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
  15. Fernández, Raquel, 2010. "Does Culture Matter?," CEPR Discussion Papers 7965, C.E.P.R. Discussion Papers.
  16. Louis Putterman & David Weil, 2008. "Post-1500 Population Flows and the Long Run Determinants of Economic Growth and Inequity," Working Papers 2008-15, Brown University, Department of Economics.
  17. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2006. "Does Culture Affect Economic Outcomes?," CEPR Discussion Papers 5505, C.E.P.R. Discussion Papers.
  18. Raquel Fernández, 2010. "Does Culture Matter?," NBER Working Papers 16277, National Bureau of Economic Research, Inc.
  19. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers.
  20. 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.
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