2018 Volume 15 Pages 165-187
This article has two purposes. One is to examine the relationship between income
inequality and generalized trust, and the other is to examine the relationship
between generalized trust and support for the welfare state. This article argues
that although the generous welfare state contributes to the building of generalized
trust, it is not necessarily desirable for the legitimacy of the welfare
state. The following findings were obtained from multilevel analysis using ISSP
data. First, individuals in countries with higher income inequality are less likely
to trust others. Second, high trusters are less likely to support the welfare state.
Third, the effect of generalized trust on support for the welfare state is smaller
in countries that spend more on active labor market policies.
The generous welfare state contributes to the building of generalized trust by
reducing income inequality. Nevertheless, generalized trust as “the foundation
of solidarity and cooperation” has the potential to undermine the legitimacy of
the welfare state by promoting the spirit of mutual help in the community. However,
there are considerable cross-national differences in the effect of generalized
trust on support for the welfare state. The level of spending on active labor
market policies of each country explains these cross-national differences. That
is, whether generalized trust undermines the legitimacy of the welfare state depends
on the institutional characteristics of the welfare state. The results suggest
the possibility that the welfare state that promotes horizontal solidarity between
beneficiaries and contributors prevents the defection of high trusters.