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Trust and racial income inequality: evidence from the U.S.

Tesei, Andrea (2015) Trust and racial income inequality: evidence from the U.S. CEP Discussion Papers (CEPDP1331). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

Existing studies of trust formation in U.S. metropolitan areas have found that trust is lower when there is more income inequality and greater racial fragmentation. I add to this literature by examining the role of income inequality between racial groups (racial income inequality). I find that greater racial income inequality reduces trust. Also, racial fragmentation is no longer a significant determinant of trust once racial income inequality is accounted for. I also show that racial income inequality has a more detrimental effect in more racially fragmented communities and that trust falls more in minority groups when racial income inequality increases. The results hold under both least squares and instrumental variable estimation.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2015 The Author
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities and Races; Non-labor Discrimination
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z10 - General
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Collections > United States Collection
Date Deposited: 20 Feb 2015 15:29
Last Modified: 25 Aug 2019 23:25
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/61029

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