This paper investigates the relationship between neighbourhood ethnic and linguistic heterogeneity and the formation of an individual's local and general trust. A wide literature across economics and sociology has recognised the importance of trust in facilitating economic growth and development...

Based on official records from the former East German Ministry for State Security, we quantify the long-term costs of state surveillance on social capital and economic performance. Using county-level variation in the spy density in the 1980s, we exploit discontinuities at state borders to show...

The paper studies the link between corruption and social capital (measured as trust), using data from a lab experiment. Subjects play either a harassment bribery game or a strategically identical but differently framed ultimatum game, followed by a trust game. In a second experiment, we elicit...

How should we interpret the World Values Survey (WVS) trust question? We conduct an experiment in India, a low trust country, to correlate the WVS trust question with trust decisions in an incentivized Trust Game. Evidence supports findings from one strand of the fractured literature - the WVS...

Both migrant entrepreneurship and social capital are topics which have attracted a great deal of attention. However, relatively little econometric analysis has been done on their interrelationship. In this paper we first consider the relationship between social capital and the prevalence of...

A range of evidence exists demonstrating that social capital is associated with a number of important economic outcomes such as economic growth, trade and crime. A recent literature goes further to illustrate how historical events and variation can lead to the development of differing and...

In this paper we explore the relationship between ethnic fractionalization and social capital. First, we test for time differences in the impact of ethnic fractionalization on social capital using U.S. data from 1990, 1997 and 2005. Subsequently we examine the data for evidence of the conflict,...

Using Israeli census data, this study provides new evidence on the long-term effects of military service on the earnings of veterans. Among Druze men aged 25-34, we find an economically and statistically significant positive effect of 18% on their wages. The respective effect for the 35-44 age...