Arbeitspapier

Do welfare programs damage interpersonal trust? Experimental evidence from representative samples for four Latin American cities

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This paper argues that welfare programs are linked with the destruction of social capital, as measured by interpersonal trust in laboratory games. The paper employs experimental data for representative samples of individuals in four Latin American capital cities (Bogota, Lima, Montevideo, and San Jose), finding that participation in welfare programs damage trust. This result is robust to the inclusion of individual risk measures and a broad array of controls. The findings also support the notion that low take-up rates may be due to stigma linked with trust and social capital, rather than transaction costs.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 668

Classification
Wirtschaft
Microeconomic Behavior: Underlying Principles
Microeconomic Analyses of Economic Development
Economic Development: General
Subject
Experiments
Surveys
Social Programs
Trust
Stigma
Latin America
Sozialhilfe
Sozialhilfeempfänger
Soziale Beziehungen
Vertrauen
Social Capital
Spieltheorie
Test
Lateinamerika

Event
Geistige Schöpfung
(who)
Chong, Alberto
Ñopo, Hugo
Rios, Vanessa
Event
Veröffentlichung
(who)
Inter-American Development Bank, Research Department
(where)
Washington, DC
(when)
2009

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Chong, Alberto
  • Ñopo, Hugo
  • Rios, Vanessa
  • Inter-American Development Bank, Research Department

Time of origin

  • 2009

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