Working Paper: NBER ID: w14268
Authors: Erzo FP Luttmer; Monica Singhal
Abstract: Is culture an important determinant of preferences for redistribution? To separate the effect of culture from the effect of the economic and institutional environment ("context"), we relate immigrants' preferences for redistribution to the average preference in their birth countries, controlling extensively for individual characteristics and country-of-residence fixed effects. We find a strong positive relationship. This cultural effect is larger for non-voters, those with shorter tenure in the country of residence, and those who move to countries with a large number of immigrants from their own birth countries. Immigrants from countries with a higher preference for redistribution are also more likely to vote for a more pro-redistribution political party. The effect of culture persists strongly into the second generation.
Keywords: culture; redistribution; immigrants; preferences
JEL Codes: D72; H23; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| average preference for redistribution in an immigrant's country of birth (J11) | own preference for redistribution in their country of residence (H23) |
| cultural effect on preference for redistribution (H23) | stronger for immigrants less politically or socially assimilated (K37) |
| mean preference in parent's country of birth (J19) | preference for redistribution in individuals born in their country of residence with an immigrant parent (J61) |