Arbeitspapier

Impacts of urbanisation on trust: Evidence from an experiment in the field

We conduct a field trust game under a natural experiment context to test the impacts of urbanisation on trust. We conjecture that urbanisation, defined in this context as the process of state-led rural-urban migration, contributes to a transformation of trust levels among co-villagers and towards outsiders. We test this conjecture in an experimental approach and more generally, examine whether the urbanisation will produce significant impacts on in-group trust and out-group trust. The research finds that urbanisation does not decrease significantly the trust towards co-villagers, meaning the in-group trust did not change statistically significantly. However, the trust towards outsiders does increase as a result of the state-led urbanisation. We also run a regression on the trust exhibited towards participants in the experiment and found the partial effect of whether they are co-villagers or outsiders weakens as a result of the urbanisation, and therefore conclude urbanisation decreases out-group discrimination in trust.

Language
Englisch

Bibliographic citation
Series: CeDEx Discussion Paper Series ; No. 2019-10

Classification
Wirtschaft
Relation of Economics to Social Values
Field Experiments
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Subject
Urbanisation
Trust
Field Experiment

Event
Geistige Schöpfung
(who)
Xu, Elvis Cheng
Event
Veröffentlichung
(who)
The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
(where)
Nottingham
(when)
2019

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Xu, Elvis Cheng
  • The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)

Time of origin

  • 2019

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