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Trust and Well-Being

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This paper presents new evidence linking trust and subjective well-being, based primarily on data from the Gallup World Poll and cycle 17 of the Canadian General Social Survey (GSS17). Because several of the general explanations for subjective well-being examined here show large and significant linkages to both household income and various measures of trust, it is possible to estimate income-equivalent compensating differentials for different types of trust. Measures of trust studied include general social trust, trust in co-workers, trust in neighbours, and trust in police. In addition, some Canadian surveys and the Gallup World Poll ask respondents to estimate the chances that a lost wallet would be returned to them if found by different individuals, including neighbours, police and strangers. Our results reveal sufficiently strong linkages between trust and well-being to support much more study of how trust can be built and maintained, or repaired where it has been damaged. We therefore use data from the Canadian GSS17 to analyze personal and neighbourhood characteristics, including education, migration history, and mobility, that help explain differences in trust levels among individuals. New experimental data from Canada show that wallets are far more likely to be returned, even by strangers in large cities, than people expect.
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... Besides, a vast number of studies have measured the relationship between social capital and life satisfaction (i.e., subjective well-being), particularly focusing on Western societies (see, e.g., Bjørnskov, 2003;Elgar et al., 2011;Helliwell, 2002;Helliwell & Putnam, 2004;Helliwell & Wang, 2011;Portela et al., 2013). Although some pieces of the literature find a negative effect of social networks on wellbeing (Ingersoll-Dayton et al., 1997;Portes & Landolt, 1996), researchers generally confirm the positive impact of dimensions of social capital on the quality of life. ...
... Unlike previous studies that primarily focus on Western countries (see, e.g., Helliwell and Wang, 2011;Portela et al., 2013;Putnam, 2002;Knack & Keefer, 1997), our study denies the link between bridging social capital and both aspects of individual well-being. In more detail, both cooperation and distrust do not reveal any significant relationship with happiness as well as income level in the rural Vietnam society. ...
... Questions 1-4 were adopted from Naef and Schupp (2009), while Question 5 was adopted from Helliwell and Wang (2010). To avoid order effects, the sequence of these five questions was randomized. ...
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The case is made for implementing national accounts of well-being to help policy makers and individuals make better decisions. Well-being is defined as people's evaluations of their lives, including concepts such as life satisfaction and happiness, and is similar to the concept of 'utility' in economics. Measures of well-being in organizations, states, and nations can provide people with useful information. Importantly, accounts of well-being can help decision makers in business and government formulate better policies and regulations in order to enhance societal quality of life. Decision makers seek to implement policies and regulations that increase the quality of life, and the well-being measures are one useful way to assess the impact of policies as well as to inform debates about potential policies that address specific current societal issues. This book reviews the limitations of information gained from economic and social indicators, and shows how the well-being measures complement this information. Examples of using well-being for policy are given in four areas: health, the environment, work and the economy, and social life. Within each of these areas, examples are described of issues where well-being measures can provide policy-relevant information. Common objections to using the well-being measures for policy purposes are refuted. The well-being measures that are in place throughout the world are reviewed, and future steps in extending these surveys are described. Well-being measures can complement existing economic and social indicators, and are not designed to replace them.