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Is tolerance good or bad for growth?

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Listed author(s):
  • Niclas Berggren

    ()

  • Mikael Elinder

    ()

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

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File URL: http://hdl.handle.net/10.1007/s11127-010-9702-x
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Article provided by Springer in its journal Public Choice.

Volume (Year): 150 (2012)
Issue (Month): 1 (January)
Pages: 283-308

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Handle: RePEc:kap:pubcho:v:150:y:2012:i:1:p:283-308
DOI: 10.1007/s11127-010-9702-x
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/public+finance/journal/11127/PS2

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

Other versions of this item:

Find related papers by 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; Social and Economic Stratification

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Cited by:

  1. Niclas Berggren & Therese Nilsson, 2013. "Does Economic Freedom Foster Tolerance?," Kyklos, Wiley Blackwell, vol. 66(2), pages 177-207, 05.
  2. Eduard Bomhoff & Grace Lee, 2012. "Tolerance and economic growth revisited: a note," Public Choice, Springer, vol. 153(3), pages 487-494, December.
  3. 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.
  4. Bjørnskov, Christian & Méon, Pierre-Guillaume, 2015. "The Productivity of Trust," World Development, Elsevier, vol. 70(C), pages 317-331.
  5. Hans Pitlik & Martin Rode, 2016. "Individualistic Values, Institutional Trust, and Interventionist Attitudes," WIFO Working Papers 515, WIFO.
  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.

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