Trust in Diverse, Integrated, Cities: A Revisionist Perspective

Abstract:     
A body of recent research claims that diversity hinders general trust, but these studies suffer from omitted variables bias by excluding segregation. This article re-examines the issue by considering how the residential isolation of minorities alters trust in cities. The first half of this study closely follows the data and methods of a recent publication and reaches the opposite conclusion by including a comprehensive measure of neighborhood segregation. The data on trust are measured for individuals living in U.S. metropolitan areas. The results strongly suggest that integration increases trust, and if anything, diversity fosters trust for any given level of segregation. The results are replicated using voting as a proxy for trust and civic participation.The mechanism is explored by analyzing the attitudes of whites towards blacks. Diversity and integration are both associated with significantly more favorable attitudes towards blacks. Trust has been identified as a source of good governance and growth; integration is likely to enhance this without presenting a tradeoff between equity and aggregate welfare.

Keywords: trust, diversity, segregation, racism, prejudice, voting

JEL Classifications: J15, H7, E02, Z10, P16

Working Paper Series