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07 Jul
Lima viernes 1:30 PM

Seminario de Economía: Social Welfare Programs, Stigma and Trust – Alberto Chong (Georgia State University)

Hasta las 2:40 pm.

Abstract: We argue that social welfare programs are linked with the destruction of social capital, as measured by interpersonal trust in laboratory games. To test for this, we employ experimental data for representative samples of individuals in six Latin American capital cities (Bogota, Buenos Aires, Caracas, Lima, Montevideo, and San Jose). In fact, we find that participation in welfare programs damages trust, a result that is robust to the inclusion of individual risk measures and a broad array of controls. Whereas we argue that endogeneity is not a critical issue, we also control for it using an instrumental variables approach. Our findings also support the notion that low take up rates may be due to stigma linked to trust and social capital, rather than to transaction costs.

 Paper: Social Welfare Programs, Stigma and Trust: Experimental Evidence for Six Latin American Cities

7 julio, 2017
1:30 pm - 2:40 pm
Aula H13
Calle Mártir José Olaya 162, Miraflores, Lima, Perú
Lima, Perú
Departamento de Economía – Lima