Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228122
Authors: 
O'Higgins, Shane Niall
Stimolo, Marco
Year of Publication: 
2019
Series/Report no.: 
LEM Working Paper Series No. 2019/24
Abstract: 
In this experiment, we study whether individuals' labour market state (i.e. employed, student or NEET) affect their trusting and trustworthy behavior. To identify both the effect of labour market state and the effect of information on others' labour market state over one's behavior, we implement an experiment with two one-shot trust games with random and anonymous matching: in the first game, subjects receive no information on the counterpart; in the second one, the labour market state of both players is common knowledge. We find that, amongst the different sub-categories of NEETs, the status of unemployed has a markedly negative effect on trust and trustworthiness. Furthermore, precariousness in the labour market results to be as damaging as unemployment for trust and trustworthiness.
Subjects: 
Trust game
Reciprocity
Youth labor market
JEL: 
C91
D31
D90
Document Type: 
Working Paper

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