Effect of Income on Trust: Evidence from the 2009 Economic Crisis in Russia

Maxim Ananyev and Sergei Guriev

The Economic Journal, 2019, vol. 129, issue 619, 1082-1118

Abstract: This article draws on a natural experiment to identify the relationship between income and trust. We use a unique panel data set on Russia where GDP experienced an 8% drop in 2009. The effect of the crisis had been uneven among Russian regions because of their differences in industrial structure inherited from the Soviet period. After instrumenting average regional income by Soviet industrial structure, we find that 10% decrease in income is associated with a five percentage point decrease in social trust. We also find that post-crisis economic recovery did not fully restore pre-crisis trust level.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (53)

Downloads: (external link)
http://hdl.handle.net/10.1111/ecoj.12612 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Effect of Income on Trust: Evidence from the 2009 Economic Crisis in Russia (2019)
Working Paper: Effect of Income on Trust: Evidence from the 2009 Economic Crisis in Russia (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:econjl:v:129:y:2019:i:619:p:1082-1118.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Economic Journal is currently edited by Francesco Lippi

More articles in The Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press () and ().