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Parental Divorce and Generalized Trust

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  • Viitanen, Tarja

    () (University of Otago)

Abstract

This paper examines the effect of parental divorce during childhood on generalized trust later on in life using Australian HILDA panel data. The dependent variable is composed of answers to the statement: “Generally speaking, most people can be trusted”. The main explanatory variables include the occurrence of parental divorce for the whole sample and the age at which parents divorced for the sub-sample. The analysis is conducted using random effects ordered probit, correlated random effects ordered probit and instrumental variables ordered probit models. The results indicate that the level of generalized trust is significantly affected by parental divorce for both men and women. This main result is very robust to alternative specifications. Furthermore, there is a marginally significant effect on the expressed level of generalized trust due to age at which parents divorced for women, but not men.

Suggested Citation

  • Viitanen, Tarja, 2011. "Parental Divorce and Generalized Trust," IZA Discussion Papers 5898, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5898
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    References listed on IDEAS

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    More about this item

    Keywords

    parental divorce; generalized trust; HILDA; random effects ordered probit; instrumental variables ordered probit;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H8 - Public Economics - - Miscellaneous Issues
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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