Trust, inequality, and ethnic heterogeneity

Date

Authors

Leigh, Andrew

Journal Title

Journal ISSN

Volume Title

Publisher

Canberra, ACT: Centre for Economic Policy Research (CEPR), The Australian National University

Abstract

Using a large Australian social survey, combined with precise data on neighbourhood characteristics, I explore the factors that affect trust at a local level (‘localised trust’) and at a national level (‘generalised trust’). Trust is positively associated with the respondent’s education, and negatively associated with the amount of time spent commuting. At a neighbourhood level, trust is higher in affluent areas, and lower in ethnically and linguistically heterogeneous communities, with the effect being stronger for linguistic heterogeneity than ethnic heterogeneity. Linguistic heterogeneity reduces localised trust for both natives and immigrants, and reduces generalised trust only for immigrants. Instrumental variables specifications show similar results. By contrast with the United States, there is no apparent relationship between trust and inequality across neighbourhoods in Australia.

Description

Keywords

social capital, income distribution

Citation

Source

Type

Working/Technical Paper

Book Title

Entity type

Access Statement

Open Access

License Rights

DOI

Restricted until

Downloads

File
Description