| Abstract: |
We empirically study the effects of culture and diversity on government
redistribution based on a large sample of countries. To disentangle culture
from institutions, our analysis employs regional instruments as well as data
on the prevalence of the pathogen Toxoplasma Gondii, linguistic differences,
and the frequency of blood types. Redistribution is higher in countries with
(1) loose family ties and individualistic attitudes, (2) high prevalence of
trust and tolerance, (3) low acceptance of unequally distributed power and
obedience, and (4) a prevalent belief that success is the result of luck and
connections. Apart from their direct effects, these traits also exert indirect
impact by influencing the transmission of inequality to redistribution.
Finally, we show that redistribution and diversity in terms of culture, ethnic
groups, and religion stand in a non-linear relationship, where moderate levels
of diversity impede redistribution and higher levels offset the generally
negative effect. |