Consequences of culture and diversity for governmental redistribution

Klaus Gründler () and Sebastian Köllner

No 136, Discussion Paper Series from Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy

Abstract: We empirically study the effects of culture and diversity on government redistribution based on a large sample of countries. To disentangle culture from institutions, our analysis employs regional instruments as well as data on the prevalence of the pathogen Toxoplasma Gondii, linguistic differences, and the frequency of blood types. Redistribution is higher in countries with (1) loose family ties and individualistic attitudes, (2) high prevalence of trust and tolerance, (3) low acceptance of unequally distributed power and obedience, and (4) a prevalent belief that success is the result of luck and connections. Apart from their direct effects, these traits also exert indirect impact by influencing the transmission of inequality to redistribution. Finally, we show that redistribution and diversity in terms of culture, ethnic groups, and religion stand in a non-linear relationship, where moderate levels of diversity impede redistribution and higher levels offset the generally negative effect.

Keywords: Culture; Redistribution; Diversity (search for similar items in EconPapers)
JEL-codes: D31 D72 I38 Z1 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cul, nep-soc and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wuewwb:136

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