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Has the COVID-19 pandemic affected public trust? Evidence for the US and the Netherlands

Author

Listed:
  • Carin van der Cruijsen
  • Jakob de Haan
  • Nicole Jonker
Abstract
Using two large-scale surveys among households, we examine the drivers of trust in banks, insurance companies, BigTechs, and other people in the United States and the Netherlands, and analyse whether the COVID-19 pandemic has affected public trust. Our results suggest that the COVID-19 pandemic did not have much effect on trust in financial institutions in the US and the Netherlands. However, trust in BigTechs and trust in other people declined in both countries, especially in the US. Our regression results show that the relationship between respondents’ characteristics and (changes in) trust differs across the US and the Netherlands, but for both countries we find evidence that individuals with poor health have lower levels of trust than healthy people, and that trust among poor-health respondents dropped more during the pandemic.

Suggested Citation

  • Carin van der Cruijsen & Jakob de Haan & Nicole Jonker, 2021. "Has the COVID-19 pandemic affected public trust? Evidence for the US and the Netherlands," Working Papers 723, DNB.
    • Handle: RePEc:dnb:dnbwpp:723
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    References listed on IDEAS

    as
    1. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
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    7. Michiel Bijlsma & Carin Cruijsen & Jester Koldijk, 2022. "Determinants of Trust in Banks’ Payment Services During COVID: An Exploration Using Daily Data," De Economist, Springer, vol. 170(2), pages 231-256, May.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Batten, Jonathan A. & Boubaker, Sabri & Kinateder, Harald & Choudhury, Tonmoy & Wagner, Niklas F., 2023. "Volatility impacts on global banks: Insights from the GFC, COVID-19, and the Russia-Ukraine war," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 325-350.
    3. Galil, Koresh & Varon, Eva, 2024. "National culture and banks stock volatility," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    4. Dr. Muhammad Asif Shamim & Dr. Aribah Aslam & Rashid Hussain & Mr. Tumani Sanneh, 2024. "The Role of Financial Cooperatives in Building Trust: A Gender Wise Global Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 703-708.

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    More about this item

    Keywords

    trust; COVID-19; financial institutions; BigTechs; health; consumer survey;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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