Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Research Institute of Industrial Economics (IFN) Working Paper Series

No 846:
Is Tolerance Good or Bad for Growth?

Niclas Berggren () and Mikael Elinder ()

Abstract: We investigate to what extent tolerance, as measured by attitudes toward different types of neighbors, affects economic growth. Data from the World Values Survey enable us to investigate tolerance–growth relationships for 54 countries. We provide estimates based on cross-sectional as well as panel-data regressions. In addition we test for robustness with respect to model specification and sample composition. Unlike previous studies, by Richard Florida and others, we find that tolerance toward homosexuals is negatively related to growth. For tolerance toward people of a different race, we do not find robust results, but the sign of the estimated coefficients is positive, suggesting that inclusion of people irrespective of race makes good use of productive capacity. We propose mechanisms to explain these divergent findings, which clarify why different kinds of tolerance may be of different economic importance.

Keywords: Tolerance; Growth; Diversity; Human Capital; Creativity; Innovatio; (follow links to similar papers)

JEL-Codes: O40; Z13; (follow links to similar papers)

34 pages, August 16, 2010

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp846.pdf    PDF-file
Download Statistics
This paper is published as:
Berggren, Niclas and Mikael Elinder, (2012), 'Is Tolerance Good or Bad for Growth?', Public Choice, Vol. 150, No. 1-2, pages 283-308

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:iuiwop:0846 This page was generated on 2014-12-14 19:24:23