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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

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

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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