Trust and Reciprocity in the Aftermath of Natural Disasters

Abstract: Beyond all the material and economic losses that natural disasters produce, post-disaster environments can alter the social capital of a community by affecting social norms, attitudes, and people’s behaviour. To analyse this issue, we empirically investigate the effect that the aftermath of a disaster can have on trust and reciprocity of people within communities. We do this by comparing outcomes of trust games conducted in earthquake-affected and non-affected rural villages one year after the 2010 Chilean earthquake. Our findings show that while trust levels do not differ across cases, reciprocity is lower in earthquake-affected areas.