Effect of the contextual (community) level social trust on women’s empowerment: an instrumental variable analysis of 26 nations

Abstract The purpose of this paper is to examine the effect of contextual (community) level social trust on women’s empowerment. The specific knowledge gap explored in this study is that the previous studies theorized that community trust has a positive impact on women’s empowerment. Thus, an increase in trust in the community will empower women. However, such an assumption has been never empirically tested and confirmed. Against this backdrop, the present paper develops a theoretical argument on why the increase in community trust should lead to a higher level of women empowerment. Then, a cross-country survey was used as a data source to test the effect of community trust on women’s empowerment. A traditional single-stage OLS and instrumental variable regressions are estimated to test the effect of community trust on women’s empowerment and quantify the magnitude of such impact. The key finding of this paper is that community trust indeed significantly strengthens the empowerment of women by increasing women’s ownership of assets and improving the decision-making authority of women in the family. Importantly, our findings are robust for the separate rural and urban samples, as well as the samples of younger and older women. Equally, our findings are robust for an alternative set of instruments. The main implication of these findings is that policymakers, social administrators, and government authorities who are working on promoting gender equality should give priority to promoting community-based interventions that nurture and maintain women’s trust.