Trust, Inequality, and Ethnic Heterogeneity

Andrew Leigh

No 511, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, 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.

Keywords: Trust; social capital; income distribution; immigration; ethnicity (search for similar items in EconPapers)
JEL-codes: D31 D71 J15 Z13 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-01
New Economics Papers: this item is included in nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (125)

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Journal Article: Trust, Inequality and Ethnic Heterogeneity (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:auu:dpaper:511

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