IDEAS home Printed from https://ideas.repec.org/a/ozl/journl/v16y2014i1p35-53.html
   My bibliography  Save this article

Parental divorce and other determinants of interpersonal trust: Evidence from HILDA panel data

Author

Listed:
  • Tarja Viitanen

    (University of Otago)

Abstract

This paper examines the determinants of interpersonal trust with an emphasis on parental divorce using Australian HILDA panel data. The dependent variable is composed of answers to the statement: ‘Generally speaking, most people can be trusted’. The analysis is conducted using random effects ordered probit and correlated random effects ordered probit. Mother’s higher education is a strong positive determinant for trust for daughters while father’s education matters for sons. A working father when the respondent was age 14 is a strong positive determinant for both men and women. An immigrant mother is a negative determinant of trust for both men and women. Residential stability has a strong positive effect for men’s interpersonal trust. The results also indicate that there is some correlation between the level of interpersonal trust and parental divorce for both men and women. However, the effect is not strong enough for the ‘divorce revolution’ to account for the overall lower societal trust in Australia.

Suggested Citation

  • Tarja Viitanen, 2014. "Parental divorce and other determinants of interpersonal trust: Evidence from HILDA panel data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(1), pages 35-53.
  • Handle: RePEc:ozl:journl:v:16:y:2014:i:1:p:35-53
    as

    Download full text from publisher

    File URL: http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE171viitanen.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Milligan, Kevin & Moretti, Enrico & Oreopoulos, Philip, 2004. "Does education improve citizenship? Evidence from the United States and the United Kingdom," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1667-1695, August.
    3. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(4), pages 857-882, December.
    4. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, May.
    5. repec:bla:ausecr:v:39:y:2006:i:2:p:176-184 is not listed on IDEAS
    6. Almudena Sevilla-Sanz & Delia Furtado and Miriam Marcen, 2010. "Does Culture Affect Divorce Decisions? Evidence from European Immigrants in the US," Economics Series Working Papers 495, University of Oxford, Department of Economics.
    7. Corak, Miles, 2001. "Death and Divorce: The Long-Term Consequences of Parental Loss on Adolescents," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 682-715, July.
    8. Andrew Leigh & Justin Wolfers, 2005. "Happiness and the Human Development Index: Australia is Not a Paradox," CEPR Discussion Papers 505, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    9. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    10. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    11. Julie Moschion & Domenico Tabasso, 2014. "Trust of second-generation immigrants: intergenerational transmission or cultural assimilation?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-30, December.
    12. Christian Pfarr & Andreas Schmid & Udo Schneider, 2011. "Estimating ordered categorical variables using panel data: a generalized ordered probit model with an autofit procedure," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 54(1), pages 7-23.
    13. Bengtsson, Mikael & Berggren, Niclas & Jordahl, Henrik, 2005. "Trust and Growth in the 1990s - A Robustness Analysis," Working Paper Series 2005:1, Uppsala University, Department of Economics.
    14. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-764, May.
    15. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
    16. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    17. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    18. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 94-122, February.
    19. Kevin Lang & Jay L. Zagorsky, 2001. "Does Growing up with a Parent Absent Really Hurt?," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 253-273.
    20. Rowthorn, Robert, 1999. "Marriage and Trust: Some Lessons from Economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(5), pages 661-691, September.
    21. Christian Pfarr & Andreas Schmid & Udo Schneider, 2010. "REGOPROB2: Stata module to estimate random effects generalized ordered probit models (update)," Statistical Software Components S457153, Boston College Department of Economics.
    22. David Roodman, 2009. "Estimating Fully Observed Recursive Mixed-Process Models with cmp," Working Papers 168, Center for Global Development.
    23. Jonathan Gruber, 2004. "Is Making Divorce Easier Bad for Children? The Long-Run Implications of Unilateral Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 799-834, October.
    24. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bilson, Jessica R. & Jetter, Michael & Kristoffersen, Ingebjørg, 2017. "Gender Differences in the Link between Income and Trust Levels: Evidence from Longitudinal Data," IZA Discussion Papers 10585, Institute of Labor Economics (IZA).
    2. Viitanen, Tarja K., 2014. "The divorce revolution and generalized trust: Evidence from the United States 1973–2010," International Review of Law and Economics, Elsevier, vol. 38(C), pages 25-32.
    3. Dahmann, Sarah C. & Kettlewell, Nathan & Lam, Jack, 2022. "Parental Separation and the Formation of Economic Preferences," IZA Discussion Papers 14993, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viitanen, Tarja, 2011. "Parental Divorce and Generalized Trust," IZA Discussion Papers 5898, Institute of Labor Economics (IZA).
    2. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    3. Viitanen, Tarja K., 2014. "The divorce revolution and generalized trust: Evidence from the United States 1973–2010," International Review of Law and Economics, Elsevier, vol. 38(C), pages 25-32.
    4. Soumyananda Dinda, 2014. "Inclusive growth through creation of human and social capital," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(10), pages 878-895, October.
    5. Soumyananda Dinda, 2014. "A theoretical basis for green growth," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 8(2), pages 177-189.
    6. Dinda, Soumyananda, 2012. "Social Capital Formation Ensuring Inclusive Growth: A Development Mechanics for Backward Region," MPRA Paper 66261, University Library of Munich, Germany, revised 12 Dec 2012.
    7. Antonio C. David & Carmen A. Li, 2010. "Exploring the links between HIV|AIDS, social capital and development," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 941-961.
    8. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, May.
    9. Marco Ferroni & Mercedes Mateo Díaz & J. Mark Payne, 2007. "Development under Conditions of Inequality and Distrust: An Exploration of the Role of Social Capital and Social Cohesion in Latin America," IDB Publications (Working Papers) 53818, Inter-American Development Bank.
    10. Graafland, J.J. & Compen, B., 2012. "Economic Freedom and Life Satisfaction : A Cross Country Analysis," Other publications TiSEM b80a9d8e-af55-43fc-bad2-9, Tilburg University, School of Economics and Management.
    11. Javier Olivera, 2015. "Changes in Inequality and Generalized Trust in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(1), pages 21-41, October.
    12. Dinda, Soumyananda, 2008. "Social capital in the creation of human capital and economic growth: A productive consumption approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2020-2033, October.
    13. Lous, Bjorn, 2020. "On free markets, income inequality, happiness and trust," Other publications TiSEM e2480eed-722b-4e2a-8e29-4, Tilburg University, School of Economics and Management.
    14. Horváth, Roman, 2013. "Does trust promote growth?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 777-788.
    15. Olivera, J., 2013. "GINI DP 80: On changes in general trust in Europe," GINI Discussion Papers 80, AIAS, Amsterdam Institute for Advanced Labour Studies.
    16. Christian Bjørnskov, 2012. "How Does Social Trust Affect Economic Growth?," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1346-1368, April.
    17. Javier Olivera, 2013. "On changes in general trust in Europe," Working Papers 201301, Geary Institute, University College Dublin.
    18. Dinda, Soumyananda, 2016. "Interrelationships between Social and human Capital, and Economic Growth," MPRA Paper 89646, University Library of Munich, Germany, revised 2017.
    19. Ljunge, Martin, 2014. "Trust issues: Evidence on the intergenerational trust transmission among children of immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 175-196.
    20. Niclas Berggren & Mikael Elinder & Henrik Jordahl, 2008. "Trust and growth: a shaky relationship," Empirical Economics, Springer, vol. 35(2), pages 251-274, September.

    More about this item

    Keywords

    Parental divorce; Interpersonal trust; HILDA; Random effects ordered probit;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ozl:journl:v:16:y:2014:i:1:p:35-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sandie Rawnsley (email available below). General contact details of provider: https://edirc.repec.org/data/becurau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.