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.