Abstract

A large literature has suggested that education leads to higher trust. In this article, I argue that how education and trust are associated at the individual level may depend on the level of risk and uncertainty of each institutional setting. Trust involves not only individuals’ risk-taking propensity and capability but also their perception of how uncertain or risky the situation they are in. I test this micro–macro interactive approach by analyzing data from the World Values Survey, the European Social Survey, and the World Bank. Results show that the education and trust association can change from positive to negative both cross-nationally and within national contexts over time in response to the social and political stability at the macro level. In stable and low-conflict societies, the association between education and trust is highly positive. However, the association becomes negative in transitional societies where social and political risks are widespread. Supporting the risk-taking and risk awareness mechanisms underpinning the interactive process, I show that education has varying impacts on risk-taking propensity and risk awareness across different institutional contexts.

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