Persistent Antimarket Culture: A Legacy of the Pale of Settlement after the Holocaust

Irena Grosfeld, Alexander Rodnyansky and Ekaterina Zhuravskaya

American Economic Journal: Economic Policy, 2013, vol. 5, issue 3, 189-226

Abstract: We estimate long-term effects of Jewish presence in Europe before World War II, using discontinuity at the border of the "Pale of Settlement" area where Jews were allowed to live in the Russian Empire. Current residents of the Pale have lower support for market, and are less entrepreneurial but more trusting compared to those outside the Pale. We suggest a mechanism and test for it: anti-Semitism generated persistent antimarket culture and trust among non-Jews. Consistent with this mechanism, antimarket attitudes and trust decrease with distance to pogroms controlling for historical Jewish presence. Self-identification and cohesion of majority depends on the presence of minority.

JEL-codes: J11 N33 N34 N43 N44 P10 Z12 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/pol.5.3.189
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Citations: View citations in EconPapers (113)

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Working Paper: Persistent Antimarket Culture: A Legacy of the Pale of Settlement after the Holocaust (2013)
Working Paper: Persistent Antimarket Culture: A Legacy of the Pale of Settlement after the Holocaust (2013)
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