Wages and institutional trust between 2019 and 2023

While research on income inequality and institutional trust mainly focuses on how actual changes in inequality and individuals’ perceptions affect trust, we know little about whether changes in wages relate to institutional trust. This study investigates how institutional trust develops across wage groups over time and whether substantial wage increases are associated with changes in institutional trust. Using data from the Panel Labour Market and Social Security (PASS), we show that wage inequality decreased in Germany between 2019 and 2023. While wage levels are positively associated with trust, decreases in wage inequality do not translate into increases in trust among low-wage workers. To the contrary, whose wages increased by approximately 20% over our observation period, show a decline in institutional trust. Fixed-effects regressions reveal a statistically significant, but only weak, association between wages and institutional trust. Overall, our findings suggest that even substantial wage increases, such as those from minimum wage reforms, may not strengthen institutional trust, highlighting the limits of economic interventions in shaping citizens’ perceptions of government.

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Publication Details

Journal
Acta Sociologica
Published
2026-04-15
DOI
https://doi.org/10.1177/00016993261442013
Primary Topic
Social Capital and Networks
Type
article
Field-Weighted Citation Impact
0.00

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article

Wages and institutional trust between 2019 and 2023

Matthias Collischon, Alexander Patzina
Acta Sociologica
Social Capital and Networks
article

Wages and institutional trust between 2019 and 2023

Matthias Collischon, Alexander Patzina
article en

Abstract

While research on income inequality and institutional trust mainly focuses on how actual changes in inequality and individuals’ perceptions affect trust, we know little about whether changes in wages relate to institutional trust. This study investigates how institutional trust develops across wage groups over time and whether substantial wage increases are associated with changes in institutional trust. Using data from the Panel Labour Market and Social Security (PASS), we show that wage inequality decreased in Germany between 2019 and 2023. While wage levels are positively associated with trust, decreases in wage inequality do not translate into increases in trust among low-wage workers. To the contrary, whose wages increased by approximately 20% over our observation period, show a decline in institutional trust. Fixed-effects regressions reveal a statistically significant, but only weak, association between wages and institutional trust. Overall, our findings suggest that even substantial wage increases, such as those from minimum wage reforms, may not strengthen institutional trust, highlighting the limits of economic interventions in shaping citizens’ perceptions of government.

Acta Sociologica
Institut für Arbeitsmarkt und Berufsforschung (DE), Employment Agency (BG), University of Bamberg (DE)
Daimler und Benz Stiftung, Hans Böckler Stiftung
Decent work and economic growth
Openalex Percentile: Top 9%
Social Capital and Networks
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Wages and institutional trust between 2019 and 2023 — Matthias Collischon, Alexander Patzina · Acta Sociologica (2026) | TGRS Research Map | TGRS