Does ethnic diversity erode trust? Putnams hunkering down thesis reconsidered

We use a multi-level modelling approach to estimate the effect of ethnic diversity on measures of generalized and strategic trust using data from a new survey in Britain with a sample size approaching 25,000 individuals. In addition to the ethnic diversity of neighbourhoods, we incorporate a range of indicators of the socio-economic characteristics of individuals and the areas in which they live. Our results show no effect of ethnic diversity on generalized trust. There is a statistically significant association between diversity and a measure of strategic trust, but in substantive terms, the effect is trivial and dwarfed by the effects of economic deprivation and the social connectedness of individuals.