Gender Differences in Trust and Reciprocity: A Lab-in-the-field Experiment with Peri-Urban Smallholders in Ethiopia

This study uses data from a trust game experiment setting to measure the trust, and willingness to reciprocate of peri-urban farmers in Ethiopia and assess if these vary depending on the gender of the farmer and of the farmer they are paired with. The experiment is framed as an investment setting and involves 500 participants, maintaining anonymity and precluding mutual reciprocity. We employ a between-differences technique to evaluate trust levels under different conditions. Findings show that male participants exhibit a higher level of trust and reciprocity compared to female participants. In turn, participants paired to the female trustee, and informed of the gender of the latter, reciprocate more than participants paired to the male trustee or trustee whose gender is not disclosed. These finding sheds light on trust dynamics in the context of investment decision setting among peri-urban farmers and has important implications for promoting trust and enhancing cooperative investment practices, thereby fostering sustainable economic development in similar agricultural settings.