Open AccessTrust and the Welfare State: the Twin Peaks Curve
Author(s) -
Algan Yann,
Cahuc Pierre,
Sangnier Marc
Publication year - 2016
Publication title -
the economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.683
H-Index - 160
eISSN - 1468-0297
pISSN - 0013-0133
DOI - 10.1111/ecoj.12278
Subject(s) - state (computer science) , welfare state , welfare , library science , sociology , political science , computer science , law , algorithm , politics
We show the existence of a twin peaks relation between trust and the size of the welfare state that stems from two opposing forces. Uncivic people support large welfare states because they expect to benefit from them without bearing their costs. But civic individuals support generous benefits and high taxes only when they are surrounded by trustworthy individuals. We provide empirical evidence for these behaviours and this twin peaks relation in the OECD countries.