IDEAS home Printed from https://ideas.repec.org/p/cfr/cefirw/w0145.html
   My bibliography  Save this paper

Persistent anti-market culture: A legacy of the Pale of Settlement and of the Holocaust

Author

Listed:
  • Irena Grosfeld

    (Paris School of Economics and CNRS)

  • Alexander Rodnyansky

    (CEFIR)

  • Ekaterina Zhuravskaya

    () (Paris School of Economics (EHESS) and New Economic School)

Abstract

We investigate the long-term effects of the important presence of Jews in Eastern Europe before the Second World War and their disappearance during the Holocaust. The Pale of Settlement, the area which Jewish residents were confined to in the Russian Empire, is used as a source of exogenous variation in the size of the Jewish population before the Second World War. Based on election and survey data, we find that current residents of the Pale, compared to their counterparts outside the Pale, vote more for socialist anti-market parties, have lower support for market economy and democracy, are less engaged in entrepreneurship, but exhibit higher levels of trust. At the same time, the Pale has no lasting effects on average consumption, income, and education levels. Regression discontinuity at the Pale border helps identification. We show that the effect of the Pale is related to the former presence of Jews rather than the inflow of new migrant population into the formerly-Jewish areas. We suggest a possible mechanism and present evidence consistent with it: non-Jewish population, at the time when two groups lived together side-by-side, developed persistent anti-market culture and bonding trust, rooted in ethnic hatred towards Jews. We show that, consistent with the mechanism, current residents of towns closer to places of pogroms exhibit higher trust and anti-market attitudes even controlling for the historical share of Jews in the population and the Pale.

Suggested Citation

  • Irena Grosfeld & Alexander Rodnyansky & Ekaterina Zhuravskaya, 2011. "Persistent anti-market culture: A legacy of the Pale of Settlement and of the Holocaust," Working Papers w0145, Center for Economic and Financial Research (CEFIR).
  • Handle: RePEc:cfr:cefirw:w0145
    as

    Download full text from publisher

    File URL: http://www.cefir.ru/papers/WP145_March2011.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1015-1049.
    2. Daron Acemoglu & Tarek A. Hassan & James A. Robinson, 2011. "Social Structure and Development: A Legacy of the Holocaust in Russia," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 895-946.
    3. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    4. Yann Algan & Pierre Cahuc, 2007. "Social Attitudes and Economic Development : an Epidemiological Approach," Sciences Po publications 6403, Sciences Po.
    5. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    6. Alberto Bisin & Thierry Verdier, 2000. ""Beyond the Melting Pot": Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 955-988.
    7. Fabian Waldinger, 2012. "Peer Effects in Science: Evidence from the Dismissal of Scientists in Nazi Germany," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 838-861.
    8. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2009. "Cultural Biases in Economic Exchange?," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1095-1131.
    9. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 469-530.
    10. Pauline Grosjean & Claudia Senik, 2011. "Democracy, Market Liberalization, and Political Preferences," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 365-381, February.
    11. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    12. Edward L. Glaeser, 2005. "The Political Economy of Hatred," The Quarterly Journal of Economics, Oxford University Press, vol. 120(1), pages 45-86.
    13. Christopher Blattman, 2008. "From Violence to Voting: War and political participation in Uganda," HiCN Working Papers 42, Households in Conflict Network.
    14. repec:cup:apsrev:v:103:y:2009:i:02:p:231-247_09 is not listed on IDEAS
    15. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
    16. Botticini, Maristella & Eckstein, Zvi, 2005. "Jewish Occupational Selection: Education, Restrictions, or Minorities?," The Journal of Economic History, Cambridge University Press, vol. 65(04), pages 922-948, December.
    17. Luigi Pascali, 2016. "Banks and Development: Jewish Communities in the Italian Renaissance and Current Economic Performance," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 140-158, March.
    18. repec:hrv:faseco:30726298 is not listed on IDEAS
    19. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 533-575.
    20. Bjornskov, Christian, 2006. "The multiple facets of social capital," European Journal of Political Economy, Elsevier, vol. 22(1), pages 22-40, March.
    21. Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-950, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Couttenier, Mathieu & Sangnier, Marc, 2015. "Living in the Garden of Eden: Mineral resources and preferences for redistribution," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 243-256.
    2. Mevlude Akbulut-Yuksel & Mutlu Yuksel, 2015. "The Long-Term Direct and External Effects of Jewish Expulsions in Nazi Germany," American Economic Journal: Economic Policy, American Economic Association, vol. 7(3), pages 58-85, August.
    3. Irena Grosfeld & Ekaterina Zhuravskaya, 2013. "Persistent effects of empires: Evidence from the partitions of Poland," PSE Working Papers halshs-00795231, HAL.
    4. Nico Voigtländer & Joachim Voth, 2012. "(Re-) Shaping hatred: Anti-Semitic attitudes in Germany, 1890-2006," Economics Working Papers 1344, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Keywords

    Pale of Settlement; Holocaust; persistent culture; anti-market; bonding trust; pogroms;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cfr:cefirw:w0145. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julia Babich). General contact details of provider: http://edirc.repec.org/data/cefirru.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.