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Ethnic diversity and trust: new evidence from Australian data

Journal Article


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Abstract


  • This paper investigates the relationship between neighbourhood ethnic and linguistic heterogeneity and individuals' local and generalised trust. A wide literature across economics and sociology has recognised the importance of trust in facilitating economic growth and development. We use fixed effects and instrumental variable regression and control for a wide set of individual and local area characteristics. Our results show that a 1 standard deviation increase in ethnic and linguistic fractionalisation is associated with a decrease in local trust of about 0.12 standard deviations, while we do not find any significant relationship between heterogeneity and generalised trust.

Publication Date


  • 2016

Citation


  • Mendolia, S., Tosh, A. & Yerokhin, O. (2016). Ethnic diversity and trust: new evidence from Australian data. The Economic Record, 92 (299), 648-665.

Scopus Eid


  • 2-s2.0-84992573877

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1996&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/990

Number Of Pages


  • 17

Start Page


  • 648

End Page


  • 665

Volume


  • 92

Issue


  • 299

Place Of Publication


  • Australia

Abstract


  • This paper investigates the relationship between neighbourhood ethnic and linguistic heterogeneity and individuals' local and generalised trust. A wide literature across economics and sociology has recognised the importance of trust in facilitating economic growth and development. We use fixed effects and instrumental variable regression and control for a wide set of individual and local area characteristics. Our results show that a 1 standard deviation increase in ethnic and linguistic fractionalisation is associated with a decrease in local trust of about 0.12 standard deviations, while we do not find any significant relationship between heterogeneity and generalised trust.

Publication Date


  • 2016

Citation


  • Mendolia, S., Tosh, A. & Yerokhin, O. (2016). Ethnic diversity and trust: new evidence from Australian data. The Economic Record, 92 (299), 648-665.

Scopus Eid


  • 2-s2.0-84992573877

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1996&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/990

Number Of Pages


  • 17

Start Page


  • 648

End Page


  • 665

Volume


  • 92

Issue


  • 299

Place Of Publication


  • Australia