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GINI DP 80: On changes in general trust in Europe

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  • Olivera, J.

Abstract

This paper analyses the determinants of trust in a pool of 33 European countries over the period 2002-2010. We find that income inequality is negatively related with trust when we analyse pooled data of individuals, which is a well established result if one focuses on cross- country differences. But, this relation vanishes when we estimate a fixed effects model with the data collapsed by country and year. Omitted variables may account for the significant and negative relationship between economic inequality and trust at the cross-sectional level. In contrast, we find a sizeable, negative and significant effect of the share of persons from minority ethnic groups on trust. This result is found in different specifications for the trust index and distribution of trust.

Suggested Citation

  • Olivera, J., 2013. "GINI DP 80: On changes in general trust in Europe," GINI Discussion Papers 80, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginidp:80
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    Cited by:

    1. Hobbs, Jill E. & Goddard, Ellen, 2015. "Consumers and trust," Food Policy, Elsevier, vol. 52(C), pages 71-74.

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