Trusting neighbours or strangers in a racially divided society: Insights from survey data in South Africa

In this paper, we investigate reported measures of trust in South Africa, collected in the 2008 National Income Dynamics Study. In particular we compare responses to two questions asked of all adult respondents about the likelihood that a lost wallet or purse containing 200 Rand will be returned either by "someone who lives close by" or by a "complete stranger". Although reported levels of trust are very low, we find that South Africans are significantly more likely to report trusting neighbours than strangers. We use ordered probit regressions to estimate the determinants of these two measures of trust. Consistent with studies from the U.S. and from South Africa, we find considerable racial variation in reported trust. In comparison to Whites, other population groups in South Africa are significantly less likely to report trusting people who live close by. However, these racial differences are dramatically reduced once differences in personal and neighbourhood income are controlled for. In contrast, racial differences in trust of strangers are smaller, and differences are even reversed among Black South Africans, who appear more trusting than other population groups of strangers. Because the majority of the population is Black, respondents may assume that a complete stranger is Black, and this finding would therefore be consistent with in-group favouritism, where individuals are relatively more likely to trust people who belong to their own population group.