Income inequality and trust in national governments in Central, Eastern and Southeastern Europe
Christian Belabed () and
Mariya Hake ()
Additional contact information
Mariya Hake: Oesterreichische Nationalbank, Foreign Research Division
Working Papers from Oesterreichische Nationalbank (Austrian Central Bank)
Using unique evidence from the OeNB Euro Survey, this paper sheds light on the correlation between the distribution of income and trust in national governments in ten Central, Eastern and Southeastern European (CESEE) countries between 2009 and 2015. By applying multilevel modeling to account for the hierarchical structure of the data, our main findings indicate that trust in national institutions increases with the individual’s position in the regional income distribution but it overall declines with the increase of regional and country income inequality. This result is valid across different measures of income inequality and despite the slight decrease of income inequality over the period. Our analysis shows that perceived high corruption and weak rule of law are key determinants of distrust in national governments, while the negative link between income inequality and trust in national governments is more pronounced in the non-EU countries in our sample.
Keywords: Income inequality; Institutional trust; Multilevel models (search for similar items in EconPapers)
JEL-codes: D1 D63 E24 H21 P23 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://www.oenb.at/dam/jcr:7dc0585f-2bb4-4bf6-8980-c032b0ff4770/WP222.pdf [303 See Other]--> https://www.oenb.at/error_path/403.html?al_req_id=YyroNSRTYfKRo2IH0j1reQAAAAQ)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbwp:222
Ordering information: This working paper can be ordered from
Oesterreichische Nationalbank, Economic Studies Division, POB 61, A-1011 Vienna, Austria
Access Statistics for this paper
More papers in Working Papers from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Knell ().