IDEAS home Printed from https://ideas.repec.org/a/eee/jcecon/v44y2016i3p541-561.html
   My bibliography  Save this article

Language, culture and institutions: Evidence from a new linguistic dataset

Author

Listed:
  • Davis, Lewis S.
  • Abdurazokzoda, Farangis

Abstract

Kashima and Kashima's (1998) linguistic dataset has played a prominent role in the economics of culture, providing the instrumental variables used in two seminal works to identify the causal effect of culture on institutional quality. However, for economists, this dataset has a number of weaknesses, including poor overlap with a key cultural dataset and reliance on sources of linguistic information of uneven quality. We address these issues by constructing a new linguistic dataset based on an authoritative source of linguistic information, the World Atlas of Language Structures. The resulting dataset has greater overlap with key sources of cultural information, is arguably less subject to selection bias, and provides more refined information regarding key dimensions of linguistic variation. We show that the variables in this dataset are significantly correlated with commonly used measures of individualism and egalitarianism. In addition, we reexamine the key results from the literature on culture and institutions, showing the causal relationship between culture and institutions is robust to the use of the new linguistic instruments.

Suggested Citation

  • Davis, Lewis S. & Abdurazokzoda, Farangis, 2016. "Language, culture and institutions: Evidence from a new linguistic dataset," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 541-561.
    • Handle: RePEc:eee:jcecon:v:44:y:2016:i:3:p:541-561
    DOI: 10.1016/j.jce.2015.10.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0147596715000992
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jce.2015.10.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
    3. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 469-529.
    4. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    5. Estefania Santacreu-Vasut & Oded Shenkar & Amir Shoham, 2014. "Linguistic gender marking and its international business ramifications," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(9), pages 1170-1178, December.
    6. Licht, Amir N. & Goldschmidt, Chanan & Schwartz, Shalom H., 2007. "Culture rules: The foundations of the rule of law and other norms of governance," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 659-688, December.
    7. Hicks, Daniel L. & Santacreu-Vasut, Estefania & Shoham, Amir, 2015. "Does mother tongue make for women's work? Linguistics, household labor, and gender identity," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 19-44.
    8. Estefania Santacreu-Vasut & Amir Shoham & Victor Gay, 2013. "Do female/male distinctions in language matter? Evidence from gender political quotas," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 495-498, March.
    9. Klasing, Mariko J., 2013. "Cultural dimensions, collective values and their importance for institutions," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 447-467.
    10. Daniel Kaufmann & Aart Kraay & Massimo Mastruzzi, 2003. "Governance Matters III: Governance Indicators for 1996-2002," Macroeconomics 0308006, University Library of Munich, Germany.
    11. Seán Roberts & James Winters, 2013. "Linguistic Diversity and Traffic Accidents: Lessons from Statistical Studies of Cultural Traits," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-13, August.
    12. 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.
    13. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2003. "Government matters III : governance indicators for 1996-2002," Policy Research Working Paper Series 3106, The World Bank.
    14. M. Keith Chen, 2013. "The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets," American Economic Review, American Economic Association, vol. 103(2), pages 690-731, April.
    15. Fearon, James D, 2003. "Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Astghik Mavisakalyan & Clas Weber, 2018. "Linguistic Structures And Economic Outcomes," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 916-939, July.
    2. Davis, Lewis S. & Williamson, Claudia R., 2016. "Culture and the regulation of entry," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1055-1083.
    3. Victor Gay & Daniel L. Hicks & Estefania Santacreu-Vasut & Amir Shoham, 2018. "Decomposing culture: an analysis of gender, language, and labor supply in the household," Review of Economics of the Household, Springer, vol. 16(4), pages 879-909, December.
    4. Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas, 2018. "Talking in the present, caring for the future: Language and environment," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1370-1387.
    5. Cline, Brandon N. & Williamson, Claudia R. & Xiong, Haoyang, 2021. "Culture and the regulation of insider trading across countries," Journal of Corporate Finance, Elsevier, vol. 67(C).
    6. Beugelsdijk, Sjoerd & Klasing, Mariko J., 2016. "Diversity and trust: The role of shared values," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 522-540.
    7. Oasis Kodila‐Tedika & Sherif Khalifa, 2020. "Long‐term vision and economic development," The World Economy, Wiley Blackwell, vol. 43(11), pages 3088-3102, November.
    8. Davis, Lewis S. & Williamson, Claudia R., 2019. "Does individualism promote gender equality?," World Development, Elsevier, vol. 123(C), pages 1-1.
    9. Drori, Israel & Manos, Ronny & Santacreu-Vasut, Estefania & Shoham, Amir, 2020. "How does the global microfinance industry determine its targeting strategy across cultures with differing gender values?," Journal of World Business, Elsevier, vol. 55(5).
    10. Beblo, Miriam & Görges, Luise & Markowsky, Eva, 2020. "Gender Matters in Language and Economic Behaviour: Can we Measure a Causal Cognition Effect of Speaking?," Labour Economics, Elsevier, vol. 65(C).
    11. Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas, 2020. "Paradise Postponed: Future Tense and Religiosity," GLO Discussion Paper Series 500, Global Labor Organization (GLO).
    12. Gründler, Klaus & Köllner, Sebastian, 2020. "Culture, diversity, and the welfare state," Journal of Comparative Economics, Elsevier, vol. 48(4), pages 913-932.
    13. Drori, Israel & Manos, Ronny & Santacreu-Vasut, Estefania & Shenkar, Oded & Shoham, Amir, 2018. "Language and market inclusivity for women entrepreneurship: the case of microfinance," Journal of Business Venturing, Elsevier, vol. 33(4), pages 395-415.
    14. Jamie Bologna Pavlik & Andrew T. Young, 2021. "The legacy of representation in medieval Europe for incomes and institutions today," Southern Economic Journal, John Wiley & Sons, vol. 88(1), pages 414-448, July.
    15. Cline, Brandon N. & Williamson, Claudia R., 2016. "Trust and the regulation of corporate self-dealing," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 572-590.
    16. Berman, Alexander & Mudambi, Ram & Shoham, Amir, 2022. "Linguistic structures and innovation: A behavioral approach," Journal of International Management, Elsevier, vol. 28(4).
    17. Astghik Mavisakalyan & Yashar Tarverdi & Clas Weber, 2022. "Heaven can wait: future tense and religiosity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 833-860, July.
    18. Matija Kovacic & Cristina Elisa Orso, 2023. "Who’s afraid of immigration? The effect of economic preferences on tolerance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1901-1940, July.
    19. Cai, Meina & Caskey, Gregory W. & Cowen, Nick & Murtazashvili, Ilia & Murtazashvili, Jennifer Brick & Salahodjaev, Raufhon, 2022. "Individualism, economic freedom, and charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 868-884.
    20. Cline, Brandon N. & Williamson, Claudia R., 2017. "Individualism, democracy, and contract enforcement," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 284-306.

    More about this item

    Keywords

    Language; Culture; Institutional quality; Individualism; Egalitarianism; Linguistic relativity;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - 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

    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:eee:jcecon:v:44:y:2016:i:3:p:541-561. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622864 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.