The power of beliefs: Evidence on the influence of trust on self-assessed health

This paper estimates the influence of trust on self-assessed health. Second generation immigrants in a broad set of European countries with ancestry from across the world are studied. There is a significant positive effect of trust on selfassessed health. Health has both intrinsic and instrumental value. The finding provides evidence for one mechanism through which trust creates desirable outcomes. Individuals with high trust feel healthier. As health may promote a more productive life, it may be one channel through which trust increases national income. The results suggest policy put more emphasis on promoting social trust.