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Social Capital and Political Institutions: Evidence that Democracy Fosters Trust

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Abstract

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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  • Ljunge, Martin, 2013. "Social Capital and Political Institutions: Evidence that Democracy Fosters Trust," Working Paper Series 988, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0988
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    17. Martin Ljunge, 2011. "Trust Issues: Evidence from Second Generation Immigrants," Discussion Papers 11-31, University of Copenhagen. Department of Economics.
    18. 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.
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    Cited by:

    1. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    2. Luca Farè & David B. Audretsch & Marcus Dejardin, 2023. "Does democracy foster entrepreneurship?," Small Business Economics, Springer, vol. 61(4), pages 1461-1495, December.
    3. Berggren, Niclas & Ljunge, Martin, 2017. "Does Religion Make You Sick? Evidence of a Negative Relationship between Religious Background and Health," Working Paper Series 1173, Research Institute of Industrial Economics.
    4. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2019. "Roots of tolerance among second-generation immigrants," Journal of Institutional Economics, Cambridge University Press, vol. 15(6), pages 999-1016, December.
    5. Vincenzo Alfano & Salvatore Ercolano, 2022. "Stay at Home! Governance Quality and Effectiveness of Lockdown," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 101-123, January.
    6. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    7. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    8. Francesco Bogliacino & Laura Jiménez & Gianluca Grimalda, 2015. "Consultative, Democracy and Trust," Documentos de Trabajo, Escuela de Economía 12696, Universidad Nacional de Colombia, FCE, CID.
    9. Ljunge, Martin, 2014. "Trust issues: Evidence on the intergenerational trust transmission among children of immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 175-196.
    10. Ruohuang Jiao & Wojtek Przepiorka & Vincent Buskens, 2022. "Moderators of reputation effects in peer-to-peer online markets: a meta-analytic model selection approach," Journal of Computational Social Science, Springer, vol. 5(1), pages 1041-1067, May.
    11. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    12. Niclas Berggren & Andreas Bergh & Christian Bjørnskov & Shiori Tanaka, 2020. "Migrants and Life Satisfaction: The Role of the Country of Origin and the Country of Residence," Kyklos, Wiley Blackwell, vol. 73(3), pages 436-463, August.
    13. Nazli Mohammad & Yvonne Stedham, 2021. "Relationship between Cultural Values, Sense of Community and Trust and the Effect of Trust in Workplace," Working Papers hal-03257439, HAL.
    14. Berggren, Niclas & Bjørnskov, Christian, 2023. "Does globalization suppress social trust?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 443-458.
    15. Bogliacino, Francesco & Jiménez Lozano, Laura & Grimalda, Gianluca, 2018. "Consultative democracy and trust11We thank Vanessa Carrillo, Jairo Paéz and Daniel Reyes for their help during the experiments. A special thanks to Franci Beltrán, Jairo Paéz and Alfonso Peña for prov," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 55-67.
    16. Ljunge, Martin, 2016. "Cultural Determinants of Gender Roles: Pragmatism Is an Important Factor behind Gender Equality Attitudes among Children of Immigrants," Working Paper Series 1137, Research Institute of Industrial Economics.
    17. Bogliacino, Francesco & Grimalda, Gianluca & Jimenez, Laura, 2017. "Consultative Democracy & Trust," MPRA Paper 82138, University Library of Munich, Germany.
    18. Bergh, Andreas & Öhrvall, Richard, 2018. "A sticky trait: Social trust among Swedish expatriates in countries with varying institutional quality," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1146-1157.
    19. Caiquan Bai & Yuan Gong & Chen Feng, 2019. "Social Trust, Pattern of Difference, and Subjective Well-Being," SAGE Open, , vol. 9(3), pages 21582440198, July.
    20. Andrea F.M. Martinangeli & Marina Povitkina & Sverker C. Jagers & Bo Rothstein, 2020. "Institutional Quality Causes Social Trust: Experimental Evidence on Trusting Under the Shadow of Doubt," Working Papers tax-mpg-rps-2020-04, Max Planck Institute for Tax Law and Public Finance.

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    More about this item

    Keywords

    Trust; Democracy; Political institutions; Cultural transmission; Social capital;
    All these keywords.

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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