We estimate long-term effects of Jewish presence in Europe before World War II, using discontinuity at the border of the "Pale of Settlement" area where Jews were allowed to live in the Russian Empire. Current residents of the Pale have lower support for market, and are less entrepreneurial but more trusting compared to those outside the Pale. We suggest a mechanism and test for it: anti-Semitism generated persistent antimarket culture and trust among non-Jews. Consistent with this mechanism, antimarket attitudes and trust decrease with distance to pogroms controlling for historical Jewish presence. Self-identification and cohesion of majority depends on the presence of minority.
Grosfeld, Irena, Alexander Rodnyansky, and Ekaterina Zhuravskaya.
"Persistent Antimarket Culture: A Legacy of the Pale of Settlement after the Holocaust."
American Economic Journal: Economic Policy,
Demographic Trends, Macroeconomic Effects, and Forecasts
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: Pre-1913
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: 1913-
Economic History: Government, War, Law, International Relations, and Regulation: Europe: Pre-1913
Economic History: Government, War, Law, International Relations, and Regulation: Europe: 1913-
Capitalist Systems: General
Cultural Economics: Religion