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Economic Development, Inequality and Generalized Trust

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  • Kyriacou, Andreas
  • Trivin, Pedro

Abstract

We argue that the positive impact of economic development on generalized trust is likely to be undermined by income inequality. Our empirical evidence, based on a panel of up to 89 countries, provides robust support for this assertion.

Suggested Citation

  • Kyriacou, Andreas & Trivin, Pedro, 2018. "Economic Development, Inequality and Generalized Trust," MPRA Paper 91651, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91651
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    References listed on IDEAS

    as
    1. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
    2. Guglielmo Barone & Sauro Mocetti, 2016. "Inequality And Trust: New Evidence From Panel Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 794-809, April.
    3. Frederick Solt, 2016. "The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 97(5), pages 1267-1281, November.
    4. Andreas P. Kyriacou, 2005. "Rationality, Ethnicity And Institutions: A Survey Of Issues And Results," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 23-42, February.
    5. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    6. Leigh, Andrew, 2006. "Does equality lead to fraternity?," Economics Letters, Elsevier, vol. 93(1), pages 121-125, October.
    7. Yann Algan & Pierre Cahuc, 2014. "Trust, Well-Being and Growth: New Evidence and Policy Implications," Post-Print hal-01169659, HAL.
    8. Bjørnskov, Christian & Dreher, Axel & Fischer, Justina A.V., 2010. "Formal institutions and subjective well-being: Revisiting the cross-country evidence," European Journal of Political Economy, Elsevier, vol. 26(4), pages 419-430, December.
    9. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    10. Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120, Elsevier.
    11. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
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    13. repec:hal:spmain:info:hdl:2441/33o86cn6qp83dot08iir97915s is not listed on IDEAS
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    More about this item

    Keywords

    development; income inequality; generalized trust; panel data;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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