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Economic growth and individualism: The role of informal institutions

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  • Hansen, Casper Worm

Abstract

This paper shows that the degree of ancestral individualism is positively related to annual earnings across second-generation US immigrants. This provides evidence in favor of Gorodnichenko and Roland’s (2011b) hypothesis that the individualistic dimension of culture is important for long-term economic growth.

Suggested Citation

  • Hansen, Casper Worm, 2013. "Economic growth and individualism: The role of informal institutions," Economics Letters, Elsevier, vol. 118(2), pages 378-380.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:378-380
    DOI: 10.1016/j.econlet.2012.12.002
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    References listed on IDEAS

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    1. Yuriy Gorodnichenko & Gerard Roland, 2011. "Which Dimensions of Culture Matter for Long-Run Growth?," American Economic Review, American Economic Association, vol. 101(3), pages 492-498, May.
    2. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    3. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 469-530.
    4. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-177, January.
    5. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2011. "Fertility and the Plough," American Economic Review, American Economic Association, vol. 101(3), pages 499-503, May.
    6. Yuriy Gorodnichenko & Gerard Roland, 2017. "Culture, Institutions, and the Wealth of Nations," The Review of Economics and Statistics, MIT Press, vol. 99(3), pages 402-416, July.
    7. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    8. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    9. Louis Putterman, 2008. "Agriculture, Diffusion and Development: Ripple Effects of the Neolithic Revolution," Economica, London School of Economics and Political Science, vol. 75(300), pages 729-748, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    2. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    3. Maryam Khosravi & Mahmood Yahyazadehfar & Mohsen Alizadeh Sani, 2023. "Economic growth and human capital in Iran: A phenomenological study in a major Central Asian economy," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 645-679, June.
    4. repec:spo:wpmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    5. Höckel, Lisa Sofie, 2016. "Individualism vs. Collectivism - How inherited cultural values affect the labor market outcomes of second generation immigrants in the US," VfS Annual Conference 2016 (Augsburg): Demographic Change 145856, Verein für Socialpolitik / German Economic Association.
    6. Nikola Najman & Petr Rozmahel & Ludek Kouba & Ladislava Grochová, 2013. "Integration of Central and Eastern European Countries: Increasing EU Heterogeneity? WWWforEurope Working Paper No. 9," WIFO Studies, WIFO, number 46856.
    7. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    8. Pitlik, Hans & Rode, Martin, 2017. "Individualistic values, institutional trust, and interventionist attitudes," Journal of Institutional Economics, Cambridge University Press, vol. 13(3), pages 575-598, September.
    9. Costa-Font, Joan & García-Hombrados, Jorge & Nicińska, Anna, 2024. "Long-lasting effects of indoctrination in school: Evidence from the People’s Republic of Poland," European Economic Review, Elsevier, vol. 161(C).
    10. Ludek Kouba & Hans Pitlik, 2014. "I wanna live my life: Locus of Control and Support for the Welfare State," MENDELU Working Papers in Business and Economics 2014-46, Mendel University in Brno, Faculty of Business and Economics.
    11. Höckel, Lisa Sofie, 2018. "Collectivism in the labor market: Evidence from second generation immigrants in the United States," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1347-1369.
    12. Joan Costa-i-Font & Jorge García-Hombrados & Anna Nicińska, 2020. "Long-Lasting Effects of Communist Indoctrination in School: Evidence from Poland," CESifo Working Paper Series 8766, CESifo.
    13. Enn Lun Yong, 2020. "Understanding Cultural Determinants of Scientific-Knowledge Development: Empirical Conceptualization from a Cross-Country Investigation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1646-1662, December.
    14. Hans Pitlik & Ludek Kouba, 2013. "The Interrelation of Informal Institutions and Governance Quality in Shaping Welfare State Attitudes. WWWforEurope Working Paper No. 38," WIFO Studies, WIFO, number 46924.

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    More about this item

    Keywords

    Epidemiological approach; Second-generation US immigrants; Individualism; Economic growth;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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