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Government size and trust

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  • Yamamura, Eiji

Abstract

This paper uses individual level data (the Japanese General Social Survey) to examine how government size influences generalized trust. After controlling for the endogeneity of government size using instrumental variables, I found: (1) Using all samples, government size is not associated with generalized trust, and (2) After splitting the sample into workers and non-workers, government size does not influence generalized trust for non-workers whereas it significantly reduces generalized trust for workers. This suggests that workers, through their work experience, might have to face greater bureaucratic red tape coming from “larger government”, leading to negative externality effects on relationships of trust in the labor market.

Suggested Citation

  • Yamamura, Eiji, 2010. "Government size and trust," MPRA Paper 24985, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24985
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    References listed on IDEAS

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    Cited by:

    1. Uchechi Shirley Anaduaka & Vivian Ikwuoma Nnetu & Stephen Ekene Aguegboh & David Iheke Okorie, 2016. "Relative Maxima of the Public Sector: A Comparative Study of Nigeria and Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 575-589, November.
    2. Eiji Yamamura, 2014. "Trust in government and its effect on preferences for income redistribution and perceived tax burden," Economics of Governance, Springer, vol. 15(1), pages 71-100, February.
    3. Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
    4. Pierre Cahuc & Yann Algan, 2009. "Civic Virtue and Labor Market Institutions," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 111-145, January.
    5. Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
    6. John Garen & J. R. Clark, 2015. "Trust and the Growth of Government," Cato Journal, Cato Journal, Cato Institute, vol. 35(3), pages 549-580, Fall.
    7. John E. Anderson, 2017. "Trust in Government and Willingness to Pay Taxes in Transition Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 1-22, March.

    More about this item

    Keywords

    Government size; Generalized trust; Employment.;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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