Racial income inequality reduces levels of trust and social capital in communities.

In recent decades, commentators and academics have become increasingly concerned over the decline in both trust and social capital in many communities in the U.S. While research has shown that race and income diversity tends to be associated with lower levels of social capital, Andrea Tesei takes a closer look, examining the relationship between trust, income inequality and racial diversity. By studying survey responses on trust from 110 metropolitan areas from 1973 to 2010, he finds that racial income inequality decreases trust within communities, and that this lack of trust is exacerbated when communities are more racially fragmented and as this inequality increases.