Why Economic Inequality Undermines Political Trust: An Analysis of Mechanisms

Abstract Research suggests that economic inequality reduces political trust after the public recognizes the inequality and perceives it as a failure of the political system in Western democracies. This study challenges this presumed “output evaluation model” (OEM) both theoretically and empirically. We provide an alternative mediator evaluation model (MEM) contending that objective inequality affects political trust through government-performance mediators, without requiring accurate public perception of inequality or specific regime types. With nationwide economic inequality and public opinion data from China, we examined both the OEM implication and four MEM mechanisms through impartial governance, responsiveness, judicial fairness, and anti-corruption efforts. Findings indicate that the mediating mechanisms, rather than direct inequality, shape political trust, with robust evidence even after addressing endogeneity. This study broadens the understanding of the intricate relationship between systemic conditions and individual perceptions, offering significant insights into the dynamics of trust in political institutions in a general sense.