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

Irena Grosfeld, Alexander Rodnyansky and Ekaterina Zhuravskaya
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Alexander Rodnyansky: CEFIR - Center for Economic and Financial Research - CEFIR

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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.

Keywords: Antimarket; Culture (search for similar items in EconPapers)
Date: 2013-08
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Citations: View citations in EconPapers (91)

Published in American Economic Journal: Economic Policy, 2013, 5 (3), pp.189-226. ⟨10.1257/pol.5.3.189⟩

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Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00879795

DOI: 10.1257/pol.5.3.189

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