Birthplace diversity, income inequality and education gradients in generalised trust: variations in the relevance of cognitive skills across 29 countries

The paper examines between-country differences in the mechanisms through which education could promote generalised trust using data from 29 countries participating in the OECD’s Survey of Adult Skills (PIAAC). Results indicate that education is strongly associated with generalised trust and that a large part of this association is mediated by individuals’ literacy skills, income and occupational prestige. However, education gradients in levels of generalised trust and in the extent to which they are due to social stratification mechanisms or cognitive skills mechanisms vary across countries. Social diversity, indicated by the presence and diversity of migrant populations and levels of income inequality, explain between country differences in the direct and indirect effects of education on trust. In particular, the relationship between literacy skills and generalised trust is stronger in the presence of more and more diverse migrant populations but is weaker in the presence of greater income inequality.