How are personal wealth and trust correlated? A social capital–based cross‐sectional study from Latvia

Abstract The relation between social capital and socio‐economic wealth is a highly debated topic in development studies. This article aims at investigating the relationship between personal wealth and trust. It combines social capital with social categorization theory through a structural equation model based on a data set of over 1000 observations collected in the Republic of Latvia, on the basis of stratified sampling, in 2010, in the wake of a deep financial and economic crisis. Main results suggest evidence of an indirect relationship between wealth and interpersonal trust, with institutional trust and social engagement as mediating factors. This evidence is tested for residence place dimensions, ethno‐linguistic affiliation, education and income. Main results hold for poorer, less educated and rural respondents, whereas significant discrepancies arise for urban respondents. Finally, results highlight the interplay of socio‐economic dimensions and social and cultural identity. This suggests the existence of different dynamics of social capital accumulation at play, depending on various socio‐demographic and socio‐economic dimensions.