In this paper, we show that trust favors specialization in complexity. U.S. states with a high level of generalized trust tend to specialize in industries involving more complex input-output relationships. This pattern is not driven by differences in the states’ other observable...

U.S. states with a high level of trust specialize in industries that involve more complex input-output relationships. This specialization pattern is not driven by differences in the states' and industries' other observable characteristics. While it is possible that specialization in complex...