Ratio Working Papers
Is Tolerance Good or Bad for Growth?
() 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; Innovation; (follow links to similar papers)
JEL-Codes: O40; Z13; (follow links to similar papers)
34 pages, August 2, 2010
Forthcoming in Public Choice.
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- This paper is forthcoming as:
Berggren, Niclas and Mikael Elinder, 'Is tolerance good or bad for growth?', Public Choice.
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