What drives trust of the long-term unemployed in their caseworkers?

Abstract

Research about drivers of trust of the long-term unemployed in their caseworkers is a white spot in the literature. The paper closes this gap using a unique data set. Embedded in a theoretical model at the organizational level a trust game with real long-term unemployed and caseworkers is evaluated. The results support the social identity theory, i.e. trust in members of the `own' group is higher than trust in members of the `other' group, as well as more traditional explanations of trust. Thus, policy can raise trust using the concept of incentive ethics of the theoretical model.