Socio-economic level, neighborhood segregation and determinants of reciprocity: evidence using representative artefactual data from Latin American cities

Abstract

We study whether urban segregation is linked to social capital and, in particular, whether socio-economic level, measured by neighborhood of provenance, is detrimental to the formation of reciprocity. We employ representative data for six Latin American cities, an underrepresented region in terms of experimental research. Our main findings provide robust evidence that individuals with higher socio-economic level increasingly reward larger levels of trust in comparison to lower socio-economic level participants.