Trust and diversity are inversely related, according to a study by Garett Jones and Daniel Rothschild. It suggests that as diversity increases, trust within a community decreases. This correlation is not restricted to racial or ethnic diversity but extends to religious and linguistic differences as well.
The study employs the concept of ‘radius of trust’, which refers to the range within which an individual is willing to trust others. It posits that this radius shrinks as diversity expands, leading to less societal trust.
The decline in trust is not only towards those from different backgrounds but also towards those from the same group. It is suggested that this is because diversity makes it harder to predict others’ behaviour, leading to a general lack of trust.
The study also highlights the impact of this correlation on economic growth. It argues that lower trust levels can hamper economic development as trust plays a significant role in fostering cooperation and reducing transaction costs.
Interestingly, the study finds that while diversity reduces trust, it does not necessarily lead to an increase in distrust. It concludes that diversity’s effect on trust is more about a reduction in trust than an increase in active distrust.
The study calls for further research to explore the mechanisms through which diversity affects trust and the potential ways to counteract this effect.
Go to source article: http://econlog.econlib.org/archives/2017/06/trust_and_diver.html