Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283877 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
LIS Working Paper Series No. 870
Publisher: 
Luxembourg Income Study (LIS), Luxembourg
Abstract: 
In recent decades, a great deal of international comparative research has examined whether social policy crowds out or crowds in social trust. Although previous studies have made significant advances, we still have much to learn. First, the proxies of social policy adopted by earlier publications may confound the levels and distribution of welfare provisions. Second, little research has explored whether two important distribution patterns of welfare provisions-lowincome targeting and universalism-crowd out or crowd in social trust in international comparative analysis. Against this backdrop, this study focuses on the distinctive roles of three dimensions of welfare transfers, such as transfer share, low-income targeting, and universalism, in social trust. For the analysis, the present study utilizes data from the Luxembourg Income Study (LIS) Database, merged data from the World Values Survey (WVS) and the European Values Study (EVS), and the two-way fixed-effects model. Through an international comparative analysis, this study clarified that low-income targeting crowds out social trust, while universalism crowds in social trust. These results suggest that (1) low-income targeting may have a side effect on social trust and (2) universalism and social trust may partly explain the selfperpetuating process of the welfare state.
Subjects: 
welfare transfers
social trust
crowd out
crowd in
two-way fixed-effects model
Document Type: 
Working Paper

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