This paper connects two strands of the literature on social trust by estimating the effects of trust on growth through a set of potential transmission mechanisms directly. It does so by modelling the process using a three-stage least squares estimator on a sample of countries for which a full...

This study investigates empirically how residence in ethnic enclaves affects labour market <p> outcomes of refugees. Self-selection into ethnic enclaves in terms of unobservable characteristics <p> is taken into account by exploitation of a Danish spatial dispersal policy which randomly <p> disperses new...</p></p></p>

This paper argues for the importance of individuals’ tolerance of inequality for <p> economic growth. By using the political ideology of governments as a measure of <p> revealed tolerance of inequality, the paper shows that controlling for ideology improves <p> the accuracy with which the effects of...</p></p></p>

We develop a social network model of occupational segregation between <p> different social groups, generated by the existence of positive inbreeding <p> bias among individuals from the same group. If network referrals <p> are important in getting a job, then expected inbreeding bias in the <p> contact...</p></p></p></p>

Based on institutional economics, the paper develops a new model pointing at two main reasons why Scandinavia is doing so well in economic terms, namely the level of decentralisation and social capital in its broad sense. The idea in the model is that a political system, which decentralises...

This paper examines the association between political ideology and the size of government and quality of the legal system and regulations. A cross-country indicator of government and citizen ideology is presented. Empirical results suggest that ideologically leftwing governments increase the...

Previous findings suggest that income inequality leads to lower legal quality. This paper <p> argues that voters’ tolerance of inequality exerts an additional influence. Empirical <p> findings suggest that inequality leads to lower legal quality due to its effect on trust <p> while the tolerance of...</p></p></p>

We hypothesize, that power centralisation in a political system leads to more corruption due to the <p> monopoly power status of bureaucrats. Corruption again would then lead to a lower level of social capital, <p> here measured as trust, and slow down economic growth even further. Indeed, when...</p></p>