Has the COVID-19 pandemic affected public trust? Evidence for the US and the Netherlands

Using two large-scale surveys among households, we examine the drivers of trust in banks, insurance companies, BigTechs, and other people in the United States and the Netherlands, and analyse whether the COVID-19 pandemic has affected public trust. Our results suggest that the COVID-19 pandemic did not have much effect on trust in financial institutions in the US and the Netherlands. However, trust in BigTechs and trust in other people declined in both countries, especially in the US. Our regression results show that the relationship between respondents’ characteristics and (changes in) trust differs across the US and the Netherlands, but for both countries we find evidence that individuals with poor health have lower levels of trust than healthy people, and that trust among poor-health respondents dropped more during the pandemic.

Keywords: trust; COVID-19; financial institutions; BigTechs; health; consumer survey
JEL codes D12; D83; E58; G21; G22

Working paper no. 723