English title: The Development of Interpersonal Trust and Its Relation to Economic Performance

Author(s): Ruben de Bliek -

Language: English

Type: Conference paper/poster

Year: 2012

Abstract

Although the literature on cross-sectional differences for interpersonal trust and their relation to differences in economic performance is quite abundant, the development of interpersonal trust within countries has received no empirical attention yet. Using panel regressions and a new measure for interpersonal trust, the average level of interpersonal trust as found in the European Social Survey, we show that economic and societal circumstances matter for the development of trust. In particular, the process of societal modernization, fueled by economic growth, hampers the development of trust. Although the effect of trust on economic performance is positive elastic, it is overshadowed by this latter process. Societal cohesion is lost when economies modernize, and this can only be recovered by an increase in interpersonal understanding through education or a diminishing of linguistic fractionalization.

Conference name: Nederlandse workshop European Social Survey

Location: Amsterdam

Start date: Sep 27, 2012

Type: Paper