Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities
This paper argues that welfare programs are linked with the destruction of social capital, as measured by interpersonal trust in laboratory games. The paper employs experimental data for representative samples of individuals in four Latin American capital cities (Bogota, Lima, Montevideo, and San Jose), finding that participation in welfare programs damage trust. This result is robust to the inclusion of individual risk measures and a broad array of controls. The findings also support the notion that low take-up rates may be due to stigma linked with trust and social capital, rather than transaction costs.
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Inter-American Development Bank
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Subjects: | Social Development, D01 - Microeconomic Behavior: Underlying Principles, O10 - Economic Development: General, O12 - Microeconomic Analyses of Economic Development, WP-668, |
Online Access: | http://dx.doi.org/10.18235/0010904 https://publications.iadb.org/en/do-welfare-programs-damage-interpersonal-trust-experimental-evidence-representative-samples-four |
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dig-bid-node-100752024-05-30T20:25:17ZDo Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities 2009-01-22T00:00:00+0000 http://dx.doi.org/10.18235/0010904 https://publications.iadb.org/en/do-welfare-programs-damage-interpersonal-trust-experimental-evidence-representative-samples-four Inter-American Development Bank Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 This paper argues that welfare programs are linked with the destruction of social capital, as measured by interpersonal trust in laboratory games. The paper employs experimental data for representative samples of individuals in four Latin American capital cities (Bogota, Lima, Montevideo, and San Jose), finding that participation in welfare programs damage trust. This result is robust to the inclusion of individual risk measures and a broad array of controls. The findings also support the notion that low take-up rates may be due to stigma linked with trust and social capital, rather than transaction costs. Inter-American Development Bank Vanessa Ríos Alberto E. Chong Hugo R. Ñopo Working Papers application/pdf IDB Publications The Caribbean Central America South America en |
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Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 |
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Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 Inter-American Development Bank Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
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This paper argues that welfare programs are linked with the destruction of social capital, as measured by interpersonal trust in laboratory games. The paper employs experimental data for representative samples of individuals in four Latin American capital cities (Bogota, Lima, Montevideo, and San Jose), finding that participation in welfare programs damage trust. This result is robust to the inclusion of individual risk measures and a broad array of controls. The findings also support the notion that low take-up rates may be due to stigma linked with trust and social capital, rather than transaction costs. |
author2 |
Vanessa Ríos |
author_facet |
Vanessa Ríos Inter-American Development Bank |
format |
Working Papers |
topic_facet |
Social Development D01 - Microeconomic Behavior: Underlying Principles O10 - Economic Development: General O12 - Microeconomic Analyses of Economic Development WP-668 |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
title_short |
Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
title_full |
Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
title_fullStr |
Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
title_full_unstemmed |
Do Welfare Programs Damage Interpersonal Trust?: Experimental Evidence from Representative Samples for Four Latin American Cities |
title_sort |
do welfare programs damage interpersonal trust?: experimental evidence from representative samples for four latin american cities |
publisher |
Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0010904 https://publications.iadb.org/en/do-welfare-programs-damage-interpersonal-trust-experimental-evidence-representative-samples-four |
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AT interamericandevelopmentbank dowelfareprogramsdamageinterpersonaltrustexperimentalevidencefromrepresentativesamplesforfourlatinamericancities |
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1809106667445420032 |