The Italian North-South Divide in Perceived Dishonesty: A Matter of Trust?

We present novel data from a survey on the perception of dishonesty in Italy. We collected data at a mass-gathering music festival in Southern Italy, whose audience includes a relevant fraction of subjects residing in Northern Italy. The survey consists of questions on perceived dishonesty measured on an institutional, social, and everyday dimension. Using structural equation models, we estimate whether regional differences in the perception of dishonesty persist even when controlling for generalized trust and socio-demographic characteristics. From a sample of nearly 1,000 individuals, we find that respondents residing in the North or abroad perceive a lower level of dishonesty in its institutional and everyday dimension than Southern respondents. Perceived dishonesty also correlates negatively with trust. Finally, we find suggestive evidence of an indirect channel going from the area of residence to perceived dishonesty through generalized trust as a mediator.