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Modern Slavery and Mistrust: A Conceptual Replication of Nunn & Wantchekon (AER, 2011)

Author

Listed:
  • Cao, Gewei

    (RS: GSBE other - not theme-related research, Microeconomics & Public Economics)

  • Rusch, Hannes

    (RS: GSBE UM-BIC, Microeconomics & Public Economics, RS: GSBE other - not theme-related research)

Abstract

Human trafficking is a modern form of slave trading. While we know that it inflicts substantial damage on its victims, its broader societal impact is not well understood. Inspired by Nunn & Wantchekon (2011, AER), we study whether human trafficking shapes interpersonal trust in two severely affected countries for which suitable criminal statistics and survey data are available: Romania and India. We find that victimization rates at the sub-national level are robustly linked to lower interpersonal trust. Our results corroborate those of Nunn & Wantchekon, conceptually replicate them in the economics of crime, and highlight their persistent contemporary relevance.

Suggested Citation

  • Cao, Gewei & Rusch, Hannes, 2025. "Modern Slavery and Mistrust: A Conceptual Replication of Nunn & Wantchekon (AER, 2011)," Research Memorandum 008, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2025008
    DOI: 10.26481/umagsb.2025008
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    More about this item

    JEL classification:

    • J47 - Labor and Demographic Economics - - Particular Labor Markets - - - Coercive Labor Markets
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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