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Discussion Paper Details
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Title: Trust and the Welfare State: the Twin Peaks Curve
Author(s): Yann Algan, Pierre Cahuc and Marc Sangnier
Publication Date: July 2014
Keyword(s): trust and welfare states
Programme Area(s): International Macroeconomics, Labour Economics and Public Economics
Abstract: We show the existence of a twin peaks relation between trust and the size of the welfare state that stems from two opposing forces. Uncivic people support large welfare states because they expect to benefit from them without bearing their costs. But civic individuals support generous benefits and high taxes only when they are surrounded by trustworthy individuals. We provide empirical evidence for these behaviors and this twin peaks relation in the OECD countries.
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Bibliographic Reference
Algan, Y, Cahuc, P and Sangnier, M. 2014. 'Trust and the Welfare State: the Twin Peaks Curve'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10061