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Lost Job, Lost Trust? On the Effect of Involuntary Job Loss on Trust

Aufsätze referiert extern - Web of Science

Tim Friehe, Jan Marcus

In: Journal of Economic Psychology 84 (2021), 102369, 9 S.


This paper tests the conjecture that involuntary job loss erodes trust. Using the German Socio-Economic Panel and considering how trust evolves over a quinquennial time interval, we find that job loss decreases trust by about 9 percent of a standard deviation.

JEL-Classification: J24;J64
Keywords: Trust, Job loss, Unemployment, SOEP