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Is tolerance good or bad for growth?

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  • Niclas Berggren

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  • Mikael Elinder

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Abstract

We investigate how tolerance, as measured by attitudes toward different types of neighbors, affects economic growth in a sample of 54 countries. Unlike previous studies, by Richard Florida and others, we find that tolerance toward homosexuals is negatively related to growth. For tolerance toward people of a different race, we do not find robust results, but the sign of the estimated coefficients is positive, suggesting that inclusion of people irrespective of race makes good use of productive capacity. We propose mechanisms to explain these divergent findings, which clarify why different kinds of tolerance may be of different economic importance. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Niclas Berggren & Mikael Elinder, 2012. "Is tolerance good or bad for growth?," Public Choice, Springer, vol. 150(1), pages 283-308, January.
    • Handle: RePEc:kap:pubcho:v:150:y:2012:i:1:p:283-308
    DOI: 10.1007/s11127-010-9702-x
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    Cited by:

    1. Shi, Yingying & Pan, Min & Peng, Daiyan, 2017. "Replicator dynamics and evolutionary game of social tolerance: The role of neutral agents," Economics Letters, Elsevier, vol. 159(C), pages 10-14.
    2. Niclas Berggren & Therese Nilsson, 2013. "Does Economic Freedom Foster Tolerance?," Kyklos, Wiley Blackwell, vol. 66(2), pages 177-207, May.
    3. Christian Bjørnskov & Pierre-Guillaume Méon, 2015. "The productivity of trust," Post-Print CEB, ULB -- Universite Libre de Bruxelles, June.
    4. Sherif Khalifa, 2017. "Endowments, Culture and Economic Development," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 664-677, August.
    5. Berggren, Niclas & Nilsson, Therese, 2016. "Tolerance in the United States: Does economic freedom transform racial, religious, political and sexual attitudes?," European Journal of Political Economy, Elsevier, vol. 45(S), pages 53-70.
    6. Berggren, Niclas & Nilsson, Therese, 2015. "Globalization and the transmission of social values: The case of tolerance," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 371-389.
    7. Niclas Berggren & Mikael Elinder, 2012. "Tolerance and growth: modeling the empirical relationship," Public Choice, Springer, vol. 153(3), pages 495-502, December.
    8. B. Dima & Ş. M. Dima, 2016. "Income Distribution and Social Tolerance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 439-466, August.
    9. Eduard Bomhoff & Grace Lee, 2012. "Tolerance and economic growth revisited: a note," Public Choice, Springer, vol. 153(3), pages 487-494, December.
    10. Pitlik, Hans & Rode, Martin, 2017. "Individualistic values, institutional trust, and interventionist attitudes," Journal of Institutional Economics, Cambridge University Press, vol. 13(3), pages 575-598, September.
    11. David B. Audretsch & Nikolaus Seitz & Katherine Margaret Rouch, 2018. "Tolerance and innovation: the role of institutional and social trust," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 71-92, March.
    12. Polterovich, Victor, 2017. "Толерантность, Сотрудничество И Экономический Рост
      [Tolerance, collaboration and economic growth]      ," MPRA Paper 81277, University Library of Munich, Germany.
    13. Yingying SHI & Min PAN, 2018. "Dynamics of Social Tolerance on Corruption: An Economic Interaction Perspective," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 135-141, December.
    14. Badgett, M.V. Lee & Waaldijk, Kees & Rodgers, Yana van der Meulen, 2019. "The relationship between LGBT inclusion and economic development: Macro-level evidence," World Development, Elsevier, vol. 120(C), pages 1-14.
    15. Necati Aydin, 2017. "Institutional Values Needed for Transformative Socio-economic Development in the Muslim World القيم المؤسسية اللازمة للتنمية الاقتصادية والاجتماعية التحويلية في العالم الإسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(SI), pages 17-35, April.
    16. J. Sebastian Leguizamon & Susane Leguizamon, 2017. "Disentangling the effect of tolerance on housing values: how levels of human capital and race alter this link within the metropolitan area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 371-392, September.
    17. repec:abd:kauiea:v:30:y:2017:i:4:p:17-35 is not listed on IDEAS
    18. Richard Florida & Charlotta Mellander & Patrick Adler, 2011. "The Creative Class Paradigm," Chapters, in: David Emanuel Andersson & Åke E. Andersson & Charlotta Mellander (ed.), Handbook of Creative Cities, chapter 3, Edward Elgar Publishing.

    More about this item

    Keywords

    Tolerance; Growth; Diversity; Human capital; Creativity; Innovation; O40; Z13;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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