Crime and trust in institutions: evidence from India

The article presents empirical evidence on the impact of crime on household's trust in institutions in India. Employing fixed effect panel regressions, the study finds that crime victimization significantly undermines trust in major public bodies, including politicians, justice-related institutions and governments. The study also documents a negative spillover effect of local crimes on public perception of institutions. Such crime-led distrust can cause persistence of weak institutions through curtailing reporting of crimes as well as support for democracy. Combating crime is thus crucial to restore citizen's trust in institutions and enhance the quality of governance in India.