Economic Inequality and Social Trust: Evidence from Changes Observed in 19 Countries between 1990 and 2020

Abstract

Relying on aggregate-level or cross-sectional survey data, extant research suggests that economic inequality erodes social trust. In this article we distinguish between cross-sectional and longitudinal components of inequality, using a sample of approximately 140,000 individuals in 19 countries over a thirty year period (1990-2020). Accounting for individual-level predictors as well as the direct and conditional effect of income, findings suggest a strong negative association between inequality and trust among countries. Individuals from countries with higher levels of inequality systematically report lower levels of trust, but evidence is less clear to substantiate that individuals are less trusting of one another during times of higher inequality. In the second part of the paper, we reassess these findings using subnational data for Spain between 2008 and 2022.