Andrew Leigh Chapter 2 of a thesis submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the subject of Public Policy, Harvard University, May 2004 May 2004 Abstract In understanding the relationship between inequality and trust across countries, it is also necessary to consider the effect of ethnic, religious and linguistic fractionalization. Using only high-quality inequality data, and a new dataset on fractionalization, I analyze a group of sixteen mostly OECD countries. Both inequality and fractionalization are negatively associated with trust, and when both are included in the model, inequality is the more significant factor. Using instrumental variables, I show that a one standard deviation increase in inequality (a 6 point rise in the...
There are no theses.