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Research ArticleArticles

Do Trust and Trustworthiness Pay Off?

Joel Slemrod and Peter Katuščák
Journal of Human Resources, July 2005, 40 (3) 621-646; DOI: https://doi.org/10.3368/jhr.40.3.621
Joel Slemrod
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Peter Katuščák
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Abstract

Are individuals who trust others better off than those who do not? Do trustworthy people prosper more than untrustworthy ones? We formulate and, using data from the World Values Survey, empirically evaluate predictions about the relationship between an individual's income and his self-reported attitudes toward trust and trustworthiness, and predictions about how these relationships are mediated by the average level of trust and trustworthiness in the country. On average, exhibiting trust has a positive, while exhibiting trustworthiness has a negative impact on income. More strikingly, the payoff to being trustworthy increases with the average level of trust in a given country.

  • Received August 2003.
  • Accepted September 2004.

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Journal of Human Resources
Vol. 40, Issue 3
1 Jul 2005
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Do Trust and Trustworthiness Pay Off?
Joel Slemrod, Peter Katuščák
Journal of Human Resources Jul 2005, 40 (3) 621-646; DOI: 10.3368/jhr.40.3.621

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Do Trust and Trustworthiness Pay Off?
Joel Slemrod, Peter Katuščák
Journal of Human Resources Jul 2005, 40 (3) 621-646; DOI: 10.3368/jhr.40.3.621
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