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Cultural Differences Between East and West Germany After 1991: Communist Values vs. Economic Performance?

Author

Listed:
  • André van Hoorn

    (Faculty of Economics and Business - University of Groningen [Groningen])

  • Robbert Maseland

    (Faculty of Economics and Business - University of Groningen [Groningen])

Abstract

Two decades after reunification substantial economic disparities between East and West Germany remain. With formal institutions being equalized, a typical explanation is that the partition of Germany created differences in economic values and attitudes that continue to feed differences in economic performance. Empirical work using values surveys to investigate the extent to which values differ between East and West has thus far produced mixed findings. We use individual-level panel data to assess East and West German value preferences by investigating how individuals from each group differentially transform situational factors into happiness. This novel method of assessing value differences shows that preferences indeed vary between East and West Germans. However, this variation is not in line with the differences associated with the gap in economic performance; if anything, Easterners appear to entertain values more conducive to economic growth. This suggests that the belief that economic differences between Eastern and Western Germany are a result of a Communist cultural legacy may be largely a myth.

Suggested Citation

  • André van Hoorn & Robbert Maseland, 2010. "Cultural Differences Between East and West Germany After 1991: Communist Values vs. Economic Performance?," Post-Print hal-00911822, HAL.
  • Handle: RePEc:hal:journl:hal-00911822
    DOI: 10.1016/j.jebo.2010.10.003
    Note: View the original document on HAL open archive server: https://hal.science/hal-00911822
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    References listed on IDEAS

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    Cited by:

    1. Sascha O. Becker & Lukas Mergele & Ludger Woessmann, 2020. "The Separation and Reunification of Germany: Rethinking a Natural Experiment Interpretation of the Enduring Effects of Communism," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 143-171, Spring.
    2. Petrunyk Inna & Pfeifer Christian, 2016. "Life Satisfaction in Germany After Reunification: Additional Insights on the Pattern of Convergence," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 217-239, March.
    3. Dimitrios Varvarigos, 2020. "Cultural Transmission, Education-Promoting Attitudes, and Economic Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 37, pages 173-194, July.
    4. Helmut Rainer & Clara Albrecht & Stefan Bauernschuster & Anita Fichtl & Timo Hener & Joachim Ragnitz & Anita Dietrich, 2018. "Deutschland 2017 - Studie zu den Einstellungen und Verhaltensweisen der Bürgerinnen und Bürger im vereinigten Deutschland," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 96.
    5. van Hoorn, André, 2018. "Is the happiness approach to measuring preferences valid?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 53-65.
    6. Abbasiharofteh, Milad & Kinne, Jan & Krüger, Miriam, 2021. "The strength of weak and strong ties in bridging geographic and cognitive distances," ZEW Discussion Papers 21-049, ZEW - Leibniz Centre for European Economic Research.
    7. van Hoorn, Andr, 2016. "Reliability and validity of the happiness approach to measuring preferences," Research Report 16008-GEM, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    8. Heinz Welsch, 2022. "What Shapes Satisfaction with Democracy? Interests, Morals, and the German East–West Divide," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 197-217, August.
    9. Triebs, Thomas & Tumlinson, Justin, 2014. "Learning Capitalism The Hard Way: Evidence From Germany's Reunification," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100457, Verein für Socialpolitik / German Economic Association.
    10. Dessy, Sylvain & Tiberti, Luca & Zoundi, David, 2023. "The gender education gap in developing countries: Roles of income shocks and culture," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 160-180.
    11. Pavol Minárik, 2013. "Ekonomie náboženství a její relevance pro ekonomy ve střední Evropě [Economics of Religion and its Relevance for Economists in Central Europe]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(5), pages 691-704.
    12. Milad Abbasiharofteh & Tom Broekel, 2021. "Still in the shadow of the wall? The case of the Berlin biotechnology cluster," Environment and Planning A, , vol. 53(1), pages 73-94, February.
    13. Biermann, Philipp & Welsch, Heinz, 2021. "An anatomy of East German unhappiness: The role of circumstances and mentality, 1990–2018," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 1-18.
    14. Philipp Biermann & Heinz Welsch, 2019. "Changing Conditions, Persistent Mentality: An Anatomy of East German Unhappiness, 1990-2016," Working Papers V-422-19, University of Oldenburg, Department of Economics, revised May 2019.
    15. Oumer, Abdella & Maseland, Robbert & Garretsen, Harry, 2020. "Was de Montesquieu (only half) right? Evidence for a stronger work ethic in cold climates," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 256-269.
    16. Costa-Font, Joan & Nicińska, Anna, 2023. "Comrades in the family? Soviet communism and demand for family insurance," LSE Research Online Documents on Economics 118472, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    values; economic performance; preferences; Germany; transition; convergence; I30; J29; P30; P51; Z13;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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