Working Paper No. 673

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

Published: November 14, 2006Pages: 32Keywords: Trust; Social capital; InequalityJEL-codes: C23; D31; Z13

Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others Magnus Gustavsson and Henrik Jordahl

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.


Henrik Jordahl


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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