Culture, diversity, and the welfare state
Klaus Gründler and
Journal of Comparative Economics, 2020, vol. 48, issue 4, 913-932
We examine how cultural socialization and diversity influence welfare systems. Our sample includes 134 countries (1975-2014). We employ spatial patterns and biological characteristics as instrumental variables for culture. The results show that culture is an important predictor for the generosity of welfare states: welfare provision is higher in countries with loose family ties and individualistic attitudes, high prevalence of trust and tolerance, and low acceptance of unequally distributed power. These channels explain 20-50% of the cross-country variation in welfare provision. Cultural heterogeneity (diversity) influences redistribution non-linearly: moderate diversity levels impede redistribution, while higher levels offset the negative effect.
Keywords: Culture; Welfare State; Institutions; Redistribution; Diversity (search for similar items in EconPapers)
JEL-codes: H11 I38 Z1 D31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:48:y:2020:i:4:p:913-932
Access Statistics for this article
Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland
More articles in Journal of Comparative Economics from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().