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Trust and the Welfare State: the Twin Peaks Curve



Type:   Working paper
Titre:   Trust and the Welfare State: the Twin Peaks Curve
Auteur(s):   Algan, Yann (1974-...) - Département d'économie (Auteur)
Cahuc, Pierre - Department of Economics (Auteur)
Sangnier, Marc - Aix-Marseille School of Economics (Auteur)
Date de publication:   2014-06
Éditeur:   Institute of Labor Economics
Collection:   IZA Discussion Paper Series  :  8277
Mots-clés:   [en] Welfare State, Trust, Civism, Corruption, Redistribution
JEL:   H1,  Z1
Résumé:   [en] 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 behaviors and this twin peaks relation in the OECD countries.


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Version de l'éditeur twin-peaks.pdf 0,52 MB