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ETHNIC DIVERSITY AND TRUST
Author(s) -
DINCER OGUZHAN C.
Publication year - 2011
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2010.00215.x
Subject(s) - fractionalization , ethnic group , polarization (electrochemistry) , index (typography) , cultural diversity , demographic economics , political science , economics , sociology , social psychology , psychology , law , chemistry , world wide web , computer science
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 D74, J15, Z13)