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We have developed an institutional theory of generalized trust. Our argument is that the structure of contemporary institutions is an important and overlooked factor that matters for the generation of generalized trust. In particular, we develop a causal mechanism which explains and specifies the causal flow from impartial, un-biased and un-corrupt, just institutions responsible for the implementation of public policies to generalized trust. The impartiality and efficiency of these institutions influences basically citizens’ institutional trust and more specifically (1) how they experience feelings of safety and protection; (2) how citizens make inferences from the system and public officials to other citizens, (3) how citizens observe the behavior of fellow-citizens, and (4) how they experience discrimination against themselves or close others. [ABSTRACT FROM AUTHOR]