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The evolution of German's values since reunification

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Listed author(s):
  • Necker, Sarah
  • Voskort, Andrea

Abstract

Exploiting the natural experiment of German reunification, we study whether having experienced socialism has an enduring effect on people's basic values. Using data from the German Socio-Economic Panel, we show that individuals that lived in the German Democratic Republic (GDR) assign different importance to six out of nine life goals. Our evidence suggests two reactions, adaption to policies/conditions in the GDR as well as switching to the opposite values. The strength of the reactions varies with East Germans' appreciation of reunification. Intergenerational transmission seems to contribute to the preservation of socialist in influence across generations; it does not differ between East and West Germany. We show that self-reported values are behaviorally relevant. Differences in values provide a possible explanation for persistent differences in behavior.

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File URL: https://www.econstor.eu/bitstream/10419/89795/1/776412930.pdf
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Paper provided by Walter Eucken Institut e.V. in its series Freiburg Discussion Papers on Constitutional Economics with number 13/13.

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Date of creation: 2013
Handle: RePEc:zbw:aluord:1313
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Keywords: endogenous preferences; socialism; intergenerational transmission;

Find related papers by JEL classification:

  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
  • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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  1. Henriette Engelhardt & Heike Trappe & Jaap Dronkers, 2002. "Differences in Family Policies and the Intergenerational Transmission of Divorce," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 6(11), pages 295-324, May.
  2. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, 06.
  3. Cipriani, Marco & Giuliano, Paola & Jeanne, Olivier, 2013. "Like mother like son? Experimental evidence on the transmission of values from parents to children," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 100-111.
  4. Stefan Bauernschuster & Helmut Rainer, 2012. "Political regimes and the family: how sex-role attitudes continue to differ in reunified Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 5-27, January.
  5. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
  6. Henriette Engelhardt & Heike Trappe & Jaap Dronkers, 2002. "Differences in family policy and the intergenerational transmission of divorce: a comparison between the former East and West Germany," MPIDR Working Papers WP-2002-008, Max Planck Institute for Demographic Research, Rostock, Germany.
  7. Bauernschuster, Stefan & Falck, Oliver & Gold, Robert & Heblich, Stephan, 2012. "The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship," European Journal of Political Economy, Elsevier, vol. 28(4), pages 485-497.
  8. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
  9. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  10. David G. Blanchflower & Richard B. Freeman, 1997. "The Attitudinal Legacy of Communist Labor Relations," ILR Review, Cornell University, ILR School, vol. 50(3), pages 438-459, April.
  11. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
  12. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
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