Crisis of trust: Socio-economic determinants of Europeans’ confidence in government

Europeans’ confidence in political institutions has dropped precipitously since the onset of the Euro-crisis in 2009. The decline in trust in government varies across countries and occupational and educational groups. Economic factors explain much of the cross-national and over-time variation. The baseline level of trust is influenced by a person’s position in the labor market: across European countries, citizens with more education and higher levels of skills trust government more than those educational and occupational groups that have benefited less from European integration. Residents of debtor countries with high unemployment rates are also much less likely to trust national government than those in creditor countries that have fared better during the economic crisis, while the unemployed have lost faith in government to a greater degree than other parts of the population. Cultural, ideational, and political factors remain important for baseline levels of trust, but cannot explain the acute, asymmetrical decline in citizen trust observed over the last decade.