Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152411
Authors: 
Shaleva, Anna E.
Year of Publication: 
2015
Citation: 
[Journal:] IZA Journal of Labor & Development [ISSN:] 2193-9020 [Volume:] 4 [Year:] 2015 [Issue:] 15 [Pages:] 1-17
Abstract: 
Alluding to theories about relative economic status and behavior, this paper studies if relative income mobility, or the intergenerational change in income positions, affects interpersonal trust. Empirically, the question is brought down to an application with US General Social Survey data. For the identification of a causal relationship, I use a structural approach and estimate a recursive bivariate probit that controls for selection on unobservables. Results suggest that trust increases if children have achieved an upward income movement away from their parents' income position, and it decreases with the experience of downward income mobility. Policy implications are also discussed.
Subjects: 
Interpersonal trust
Intergenerational income mobility
Recursive bivariate probit
Selection on unobservables
JEL: 
H8
O4
Z00
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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