Ethnic Diversity and Trust

10 Pages Posted: 7 Apr 2011

See all articles by Oguzhan C. Dincer

Oguzhan C. Dincer

Illinois State University - Department of Economics; Harvard University - Edmond J. Safra Center for Ethics

Date Written: April 2011

Abstract

Using data from U.S. states, I investigate the relationship between ethnic diversity and trust. I find a negative relationship between ethnic polarization and trust and a U-shaped relationship between ethnic fractionalization and trust. According to my estimations, (a) going from an ethnic polarization index (PI) of 0 to an ethnic PI of 1 decreases trust by almost 12% points; and (b) trust is minimized when the ethnic fractionalization index is equal to 0.34.

JEL Classification: D74, J15, Z13

Suggested Citation

Dincer, Oguzhan C., Ethnic Diversity and Trust (April 2011). Contemporary Economic Policy, Vol. 29, Issue 2, pp. 284-293, 2011. Available at SSRN: https://ssrn.com/abstract=1804763 or http://dx.doi.org/10.1111/j.1465-7287.2010.00215.x

Oguzhan C. Dincer (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

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