Publication:
Institutional Trust, Perceptions of Distributive Unfairness, and Income across Salvadoran Municipalities

Loading...
Thumbnail Image
Files in English
English PDF (1.5 MB)
97 downloads
English Text (93.84 KB)
22 downloads
Date
2023-03-23
ISSN
Published
2023-03-23
Editor(s)
Abstract
Using multiple waves of two public opinion surveys and a two-way fixed effect model, this paper analyzes how people’s perceptions and attitudes towards public institutions shifted with the business cycle in El Salvador during 2004–2018. It finds that individuals’ levels of trust toward both the president and the municipal government are positively associated with higher levels of income at the municipality level. Income is also a strong predictor of trust in mass media, confidence in the judicial system and, to a lesser extent, trust in the national legislature but income does not affect trust in the Catholic Church. The relationship between income and trust toward the president and municipalities masks a relevant heterogeneity from a rural-urban divide as well as from differences in municipal state capacity. Further, views of income distribution fairness as well as preferences for democracy are positively shaped by municipality-specific business cycles. In contrast, neither generalized trust nor satisfaction with democracy is empirically associated with income at the municipality level.
Link to Data Set
Citation
Depetris-Chauvin, Emilio. 2023. Institutional Trust, Perceptions of Distributive Unfairness, and Income across Salvadoran Municipalities. Policy Research Working Papers; 10372. © World Bank. http://hdl.handle.net/10986/39587 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Briefing Book from Development Partners of Moldova
    (Washington, DC, 2015) World Bank Group
    The community of development partners in the Republic of Moldova would be honored to engage in the development policy dialogue with the new Government. This briefing book from development partners is offered as a first step in such a dialogue and is solely intended to assist the new Government by providing development partners views and proposals that it can use to the extent it considers useful and relevant. These recommendations are based on Moldova s existing policy orientations as set out in the National Development Strategy Moldova 2020, its international obligations, and the Association Agreement (AA) with the European Union (EU). Moldova made a formal commitment to accelerate the country s development by making it capital-intensive, sustainable and knowledge-driven. With a strategic framework outlining Moldova s development path in place, it is now critical to accelerate implementation of the reforms including those set out in the Association Agenda to move closer to the EU. Moldova faces significant risks in the financial sector, which should be addressed as a matter of urgency. A well-regulated and reliable banking sector is fundamental to business, people and international investors. At the same time a robust system of public financial management should be in place to ensure transparency and accountability of public finances. Moldova should develop a competitive business environment attractive to new investment. Moldova should also take advantage of new trading opportunities through effective implementation of the Deep and Comprehensive Free Trade Area (DCFTA).
  • Publication
    Special Interests versus the Public Interest in Policy Determination
    (World Bank, Washington, DC, 2009-05) Rausser, Gordon C.; Roland, Gérard
    This paper focuses on recent theoretical developments in political economy and what role they might play in explaining and reforming individual country and global distortions in food and agricultural markets. Four groups of forces are isolated: political governance structures emphasizing the role of democratic mechanisms; the design of polycentric structures for assigned governmental authority for setting policy instruments; market structure and other socioeconomic characteristics; and the role of sector mobility and asset diversification. Each of these forces are distilled and data sources are reviewed that will allow econometric specifications that have both explanatory and policy reform implications.
  • Publication
    The Political Economy of the Middle Class in the Dominican Republic : Individualization of Public Goods, Lack of Institutional Trust and Weak Collective Action
    (World Bank, Washington, DC, 2012-04) Sánchez, Miguel Eduardo; Senderowitsch, Roby
    This paper tries to uncover some of the hidden factors behind poor public service delivery in the Dominican Republic. By looking at three sector cases, education, health and electricity, it is possible to observe that in this setting of low quality of public services the "middle class" is opting out from the system and adopting private solutions to collective problems. The combination of this opting out behavior with low levels of institutional trust, especially among "middle class" members, fragmented interests and clientelism, among other factors, results in weak collective action and lack of effective demand for improvements in service provision. Some of the tentative policy options to break this sub-optimal equilibrium are i) to build capacity in civil society organizations and help them forming a pro-reform coalition, ii) reduce the gap between the middle class and the poorer by trying to improve the provision of public goods and enlarging the welfare state, and (iii) increase transparency mechanisms and introduce e-government formulas in order to optimize the allocation of public resources.
  • Publication
    Distributional Policies and Social Cohesion in a High-Unemployment Setting
    (World Bank, Washington, DC, 2022-06) Agüero, Jorge M.; Fasola, Eniola
    This paper studies the impact of distributional policies on social cohesion. The focus is on South Africa, a country with the highest unemployment rate worldwide and a major destination hub for the forcibly displaced. The paper uses a regression discontinuity design based on the eligibility rule of an unconditional cash transfer program (Old Age Pension) together with multiple rounds of the country’s Social Attitudes Survey and estimates the impact of the cash transfer to the local population on over 100 variables capturing different dimensions of social cohesion, while accounting for multiple hypothesis testing. Results show a limited impact of the transfer on social cohesion. Transfer increases life satisfaction and views favorable towards racial diversity. However, it has only a marginal effect on interpersonal trust and a very small effect on attitudes towards immigration. These findings are consistent with theoretical models where anti-immigrant behaviors are not the result of low-income but rather due to non-wage factors such as ethnic background or language barriers.
  • Publication
    Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys
    (Published by Oxford University Press on behalf of the World Bank, 2005-01) Milanovic, Branko
    New data derived directly from household surveys are used to examine the effects of globalization on income distribution in poor and rich countries. The article looks at the impact of openness and of direct foreign investment on relative income shares across the entire income distribution. It finds strong evidence that at low average income levels, the income share of the poor is smaller in countries that are more open to trade. As national income levels rise, the incomes of the poor and the middle class rise relative to the income of the rich. The article explains why using the trade to gross domestic product (GDP) ratio in purchasing power parity terms, as favored by some analysts, is inappropriate in studies of the effect of trade on income distribution.

Users also downloaded

Showing related downloaded files

  • Publication
    The Container Port Performance Index 2023
    (Washington, DC: World Bank, 2024-07-18) World Bank
    The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Global Economic Prospects, January 2024
    (Washington, DC: World Bank, 2024-01-09) World Bank
    Note: Chart 1.2.B has been updated on January 18, 2024. Chart 2.2.3 B has been updated on January 14, 2024. Global growth is expected to slow further this year, reflecting the lagged and ongoing effects of tight monetary policy to rein in inflation, restrictive credit conditions, and anemic global trade and investment. Downside risks include an escalation of the recent conflict in the Middle East, financial stress, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers face enormous challenges. In emerging market and developing economies (EMDEs), commodity exporters face the enduring challenges posed by fiscal policy procyclicality and volatility, which highlight the need for robust fiscal frameworks. Across EMDEs, previous episodes of investment growth acceleration underscore the critical importance of macroeconomic and structural policies and an enabling institutional environment in bolstering investment and long-term growth. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.