Immigrant and entrepreneurial dynamics in institutional trust

This study explores the relationship between immigration, employment type (entrepreneurship vs. salaried work), and institutional trust, focusing on immigrant entrepreneurs in Israel. Using data from the 2022 Israeli Social Survey (N = 6,501), the findings reveal that immigrants generally exhibit higher institutional trust than native-born individuals, though this trust diminishes over time. Entrepreneurs, regardless of origin, report the lowest trust levels, likely due to more frequent interactions with regulatory institutions. Among immigrant entrepreneurs, the positive effect of immigration counterbalances the negative effect of entrepreneurship. Possible explanations include different reference points for the immigrants as well as their initial idealisation of host-country institutions. On the negative side are accumulated frustrations with bureaucratic systems. The study contributes to the literature on entrepreneurship, institutional trust, and immigration, particularly regarding immigrants' adaptation. The study offers insights for policymakers aiming to strengthen civic participation and trust among immigrants, fostering a more inclusive and stable society.