Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Social trust and the growth of schooling
Abstract: The paper develops a simple model to exemplify how social
trust might affect the growth of schooling through lowering transaction
costs associated with employing educated individuals. In a sample of 52
countries, the paper thereafter provides empirical evidence that trust has
led to faster growth of schooling in the period 1960-2000. The findings are
robust to the inclusion of a set of control variables and being estimated
using an instrumental variables approach.
Keywords: Trust; Schooling; Economic development; (follow links to similar papers)
JEL-Codes: J24; O15; Z13; (follow links to similar papers)
52 pages, January 1, 2007
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