Determinants of social cohesion: cross-country evidence

Yabibal M. Walle (2022)

Key facts

Journal/Publisher

Discussion Paper 18/2022

Type of publication

Working paper

Elements of social cohesion

Trust
Identity/feeling of belonging
Cooperation

Geographical focus

Europe and Central Asia
Middle East and North Africa
South Asia
Latin America and Caribbean
Sub-Saharan Africa
East Asia and Pacific
North America

Main thematic areas

Economic development
Political institutions & governance
Inequality

Link to publication

Summary

Noting that few studies to date have investigated the determinants of social cohesion in a comprehensive and systematic manner, this paper examines the macro-level determinants of social cohesion using a panel of up to 92 developing and developed countries for the period 1990–2020. Employing the system GMM dynamic panel data estimator, which addresses endogeneity concerns by means of internal instruments, I find that the levels of education, government size, globalisation, and economic development have significantly positive effects on most dimensions of a country’s social cohesion. In contrast, inflation, corruption and income inequality are detrimental to social cohesion.