ETHNIC DIVERSITY AND TRUST |
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| Authors: | OGUZHAN C. DINCER |
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| Affiliation: | Dincer: Assistant Professor, Department of Economics, Illinois State University, Normal, IL 61790‐4200. Phone (309) 438 7071, Fax (309) 438 5228, E‐mail odincer@ilstu.edu |
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| Abstract: | 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) |
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