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Cooperation Hidden Frontiers: The Behavioral Foundations of the Italian North-South Divide

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  • Maria Bigoni
  • Stefania Bortolotti
  • Marco Casari
  • Diego Gambetta
  • Francesca Pancotto

Abstract

Socio-economic performance differs not only across countries but within countries too and can persist even after religion, language, and formal institutions are long shared. One interpretation of these disparities is that successful regions are characterized by higher levels of trust, and, more generally, of cooperation. Here we study a classic case of within-country disparities, the Italian North-South divide, to find out whether people exhibit geographically distinct abilities to cooperate independently of many other factors and whence these differences emerge. Through an experiment in four Italian cities, we study the behavior of a sample of the general population toward trust and contributions to the common good. We find that trust and contributions vary in unison, and diminish moving from North to South. This regional gap cannot be attributed to payoffs from cooperation or to institutions, formal or informal, that may vary across Italy, as the experimental methodology silences their impact. The gap is also independent of risk and other-regarding preferences which we measure experimentally, suggesting that the lower ability to cooperate we find in the South is not due to individual "moral" flaws. The gap could originate from emergent collective properties, such as different social norms and the expectations they engender. The absence of convergence in behavior during the last 150 years, since Italy was unified, further suggests that these norms can persist overtime. Using a millenniumlong dataset, we explore whether the quality of past political institutions and the frequency of wars could explain the emergence of these differences in norms.

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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number ECO2013/04.

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Date of creation: 2013
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Handle: RePEc:eui:euiwps:eco2013/04

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Keywords: Trust; social norms; experiments; long-term persistence; conflicts; institutions.;

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References

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Cited by:
  1. Giacomo Degli Antoni & Gianluca Grimalda, 2013. "Optimistic expectations or other-regarding preferences? Analysing the determinants of trust among association members," Working Papers 2013/21, Economics Department, Universitat Jaume I, Castellón (Spain).
  2. D. Dragone & F. Galeotti & R. Orsini, 2013. "Temporary Workers Are Not Free-Riders: An Experimental Investigation," Working Papers wp915, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Meier, Stephan & Pierce, Lamar & Vaccaro, Antonino, 2014. "Trust and In-Group Favoritism in a Culture of Crime," IZA Discussion Papers 8169, Institute for the Study of Labor (IZA).
  4. Mark Dincecco & Massimiliano Gaetano Onorato, 2013. "Military Conflict and the Economic Rise of Urban Europe," Working Papers 7/2013, IMT Institute for Advanced Studies Lucca, revised Nov 2013.

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