1 vs column 2) and statistically significant under the standard level of confidence ( _p_ -value<0.05). To give a sense of the magnitude of the point estimate, an individual living in a municipality experiencing a one-standard deviation increase in the log of average per capita family income is 5 percentage points more likely to trust in the president. This increase represents 11% of the mean value of trust in the analyzed sample. Further, controlling for the level of crime and the size of federal funds received by the municipality of residence a year before the interview slightly increase the size of the point estimate (column 3). Four additional patterns emerge from specifications in columns 1 to 3 in Table 3. First, individual-level covariates such as gender, unemployment status, and age do not predict trust in the president.<sup>13</sup> Second, individuals living in rural areas are roughly 3 percentage points more likely to trust in the president. Third, as years schooling increase, trust in government decreases. Fourth, higher homicide rates appear to erode trust in the president. Fourth, FODES transfer does not predict trust in the president.

When I extend the sample of municipalities under study and use NTL density as proxy for income, I find very similar results. Noteworthy, the precision of the estimate for the main coefficient of interest increases ( _p_ -value<0.01). After standardizing the implied effects, the magnitude of the coefficient in column 4 is slightly larger than in column 3: a one-standard deviation increase in NTL density is associated with a 0.17-standard deviation increase in trust towards the president. Put differently, individuals living in municipality having a one-standard deviation increase in NTL density are 8.2 percentage points more likely to trust in the Salvadoran president.

In columns 5 and 6 of Table 3 I focus on trust in the municipal government. Average per capita family income at the municipality level is a strong predictor of trust in local government ( _p_ -value<0.01). Individuals in municipalities experiencing a one-standard deviation increase in the log of average per capita family income are 3.5 percentage points more likely to trust in this institution. When extending the sample and using NTL density as main explanatory variable I find again a slightly larger standardized effect (albeit statistically weaker): a one-standard deviation increase in NTL density is associated with a 4.5 percentage points increase in the likelihood of trusting the municipal government. The results in columns 5 and 6 of Table 3 also shed light on other determinants of institutional trust: individuals living in rural areas tend to trust more whereas men, older and more educated individuals tend to trust less in local government. (Generally, more educated individuals tend to trust less regardless of the institutions.) Interestingly, the size of central government transfers (FODES) positively correlates with trust in municipal government. The magnitude of the latter effect is economically significant: a one-standard deviation increase in per capita central government transfer (i.e., USD 38.2 per inhabitant) is associated with a 7 percentage points increase in the likelihood of trusting the municipal government.

> 13Using data from the World Value Surveys for 79 countries Algan and Cahuc (2013) show that age positively correlates with generalized trust across while gender does not predict trust.

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