Diversity, Trust and Redistribution
Dialogue, 25(3): 43-49 (2006)
PDF - http://econrsss.anu.edu.au/~aleigh/pdf/DiversityTrustRedistribution.pdf
Andrew Leigh
"Since the time of European settlement, Australia has been shaped by immigration. From a pure economic standpoint, immigration supplements our labour market with much-needed skills. And thanks to our immigration points system, studies have found little evidence that immigration increases the unemployment rate in Australia. Yet the impact of immigration goes beyond the economic and the culinary effects. T wo other areas that are less commonly discussed are the relationship between ethno-linguistic diversity and interpersonal trust, and between diversity and support for a generous welfare state. The results of a succession of studies suggest that we may have to work harder if we are to make Australia both diverse and high-trust, and to combine high levels of immigration with a generous welfare state. The first part of this paper focuses on the evidence on trust and diversity, while the second part reviews data on trust and support for a redistributive welfare state. The final section concludes with some tentative suggestions as to how these issues may play out over future decades."