Becker, Sascha O. Boeckh, Katrin Hainz, Christa Woessmann, Ludger
Year of Publication:
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: History Matters D3-V3
Do Empires affect human values and behavior long after their demise? In several Eastern European countries, communities on both sides of the long-gone border of the Habsburg Empire have been sharing common formal institutions for 90 years now. We exploit this geographic discontinuity in a regression-discontinuity design with country fixed effects using data of individuals living inside a restricted band around the former border. We find that historical Habsburg affiliation increases current social capital and trust and reduces corruption in several public services. Past formal institutions can leave a legacy through cultural norms even after generations of common statehood.
Institutions social capital trust corruption Habsburg Empire regression discontinuity