The decline of trust across the U.S. finance industry
Accepted version
Peer-reviewed
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Authors
Limbach, P
Rau, PR
Schuermann, H
Abstract
We provide evidence on the evolution of generalized trust among finance professionals using data from the General Social Survey over the period 1978-2016. Accounting for demographic, regional, and socioeconomic characteristics, we document a significant decline in the level of trust among finance professionals relative to the decline of trust in the U.S. population. This decline is unique to the finance industry and is particularly strong in the early years of the sample when finance professionals initially exhibited a higher level of trust than the average American. The decline occurs across all subsectors in finance and at all hierarchy levels.
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Keywords
3502 Banking, Finance and Investment, 35 Commerce, Management, Tourism and Services
Journal Title
Journal of Economic Behavior and Organization
Conference Name
Journal ISSN
0167-2681
2328-7616
2328-7616
Volume Title
Publisher
Elsevier