This paper investigates the relationship between neighbourhood ethnic and linguistic heterogeneity and individuals’ local and generalised trust. A wide literature across economics and sociology has recognised the importance of trust in facilitating economic growth and development. We use fixed effects and instrumental variable regression and control for a wide set of individual and local area characteristics. Our results show that a 1 standard deviation increase in ethnic and linguistic fractionalisation is associated with a decrease in local trust of about 0.12 standard deviations, while we do not find any significant relationship between heterogeneity and generalised trust.
CITATION STYLE
Mendolia, S., Tosh, A., & Yerokhin, O. (2016). Ethnic Diversity and Trust: New Evidence from Australian Data. Economic Record, 92(299), 648–665. https://doi.org/10.1111/1475-4932.12295
Mendeley helps you to discover research relevant for your work.