2006–2010

Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others

Reprint No. 2008:28

Author(s): Magnus Gustavsson and Henrik JordahlYear: 2008 Title: Journal of Public Economics Volume (No.): 92 (1-2) Pages: 348–365


We present new evidence on the influence of income inequality on generalized trust. Using individual panel data from Swedish counties together with an instrumental variable strategy, we find that differences in disposable income, and especially differences among people in the bottom half of the income distribution, are associated with lower trust. The relationship between income inequality and trust is particularly strong for people with a strong aversion against income differentials. We also find that the proportion of people born in a foreign country is negatively associated with trust.


Reference:
Gustavsson, Magnus and Henrik Jordahl (2008), "Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others". Journal of Public Economics 92(1-2), 348–365.

Henrik Jordahl

Contact

Ph: +46 8 665 4533
Mob: +46 70 938 3858
henrik.jordahl@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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