English title: Trust and the Welfare State: the Twin Peaks Curve

Author(s): Yann Algan - Pierre Cahuc - Marc Sangnier -

Language: English

Type: Journal article

Year: 2016

Abstract

We show the existence of a twin peaks relation between trust and the size of the welfare state that stems from two opposing forces. Uncivic people support large welfare states because they expect to benefit from them without bearing their costs. But civic individuals support generous benefits and high taxes only when they are surrounded by trustworthy individuals. We provide empirical evidence for these behaviours and this twin peaks relation in the OECD countries.

Volume: 126

Issue: 593

From page no: 861

To page no: 883

Refereed: Yes

DOI: 10.1111/ECOJ.12278

Journal: The Economic Journal

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