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Market institutions bring tolerance, especially where there is social trust

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  • Niclas Berggren
  • Therese Nilsson

Abstract

Tolerant societies seem to function better than nontolerant societies both economically and socially. This makes it worthwhile to identify ways to stimulate tolerance. While previous research indicates that market-oriented formal institutions and policies offer such stimulus, it does not investigate what role cultural factors, like social trust, plays. We find that trust is a catalyst: The more there is, the more positive the effect of economic freedom on tolerance. Formal institutions hence interact with the culture of a society and work better as generators of tolerance in alignment with trust.

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  • Niclas Berggren & Therese Nilsson, 2014. "Market institutions bring tolerance, especially where there is social trust," Applied Economics Letters, Taylor & Francis Journals, vol. 21(17), pages 1234-1237, November.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:17:p:1234-1237
    DOI: 10.1080/13504851.2014.922666
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    1. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    2. Niclas Berggren & Therese Nilsson, 2013. "Does Economic Freedom Foster Tolerance?," Kyklos, Wiley Blackwell, vol. 66(2), pages 177-207, May.
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    Cited by:

    1. Kim, Min Sung & Jung, Yoonhyuk & Kim, Junghwan, 2021. "A study on factors affecting privacy risk tolerance to prevent the spread of COVID-19 in South Korea," Business Horizons, Elsevier, vol. 64(6), pages 735-741.
    2. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2019. "Roots of tolerance among second-generation immigrants," Journal of Institutional Economics, Cambridge University Press, vol. 15(6), pages 999-1016, December.
    3. Niclas Berggren & Christian Bjørnskov & Therese Nilsson, 2017. "What Aspects of Society Matter for the Quality of Life of a Minority? Global Evidence from the New Gay Happiness Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1163-1192, July.
    4. Berggren, Niclas & Nilsson, Therese, 2016. "Tolerance in the United States: Does economic freedom transform racial, religious, political and sexual attitudes?," European Journal of Political Economy, Elsevier, vol. 45(S), pages 53-70.
    5. Bonick, Matthew & Farfan-Vallespin, Antonio, 2018. "The Reversal of Fortune, Extractive Institution and the Historical Roots of Racism," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181569, Verein für Socialpolitik / German Economic Association.
    6. Jackson, Jeremy & Beaulier, Scott, 2023. "Economic freedom and philanthropy," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 148-183.
    7. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2022. "Immigrants’ Tolerance and Integration into Society," Working Paper Series 1447, Research Institute of Industrial Economics.
    8. Berggren, Niclas & Nilsson, Therese, 2021. "Economic freedom and antisemitism," Journal of Institutional Economics, Cambridge University Press, vol. 17(2), pages 289-304, April.
    9. Walker Wright, 2022. "Illiberal economic institutions and racial intolerance in the United States," Economic Affairs, Wiley Blackwell, vol. 42(2), pages 307-326, June.
    10. Peiró-Palomino, Jesús & Gianmoena, Lisa & Picazo-Tadeo, Andrés J. & Rios, Vicente, 2024. "Social trust and the advanced aspects of social progress. Evidence for the European regions," European Journal of Political Economy, Elsevier, vol. 83(C).
    11. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2023. "Immigrants from more tolerant cultures integrate deeper into destination countries," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1095-1108.
    12. Callais, Justin & Harris, Colin & Borchard, Ben, 2022. "The moral costs of markets: Testing the deterioration hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 200-220.
    13. Eva Mª Buitrago & Mª Ángeles Caraballo & José L. Roldán, 2019. "Do Tolerant Societies Demand Better Institutions?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1161-1184, June.
    14. David B. Audretsch & Nikolaus Seitz & Katherine Margaret Rouch, 2018. "Tolerance and innovation: the role of institutional and social trust," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 71-92, March.
    15. Berggren, Niclas & Bjørnskov, Christian, 2023. "Does globalization suppress social trust?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 443-458.
    16. Bonick, Matthew & Farfán-Vallespín, Antonio, 2018. "The reversal of fortune, extractive institutions and the historical roots of racism," The Constitutional Economics Network Working Papers 06-2018, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    17. Berggren, Niclas & Nilsson, Therese & Bjørnskov, Christian, 2015. "What Aspects of Society Affect the Quality of Life of a Minority? Global Evidence from the New Gay Happiness Index," Working Paper Series 1101, Research Institute of Industrial Economics.
    18. Jesús Peiró-Palomino & Lisa Gianmoena & Andrés J. Picazo-Tadeo & Vicente Ríos, 2023. "Does social trust determine social progress? Evidence for the European regions," Working Papers 2305, Department of Applied Economics II, Universidad de Valencia.
    19. Claudia Williamson Kramer, 2023. "Individualism and racial tolerance," Public Choice, Springer, vol. 197(3), pages 347-370, December.

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