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
The Emerging Aversion to Inequality:Evidence from Poland 1992-2005 * This paper provides an illustration of the changing tolerance for inequality in a context of radical political and economic transformation and rapid economic growth. We focus on the Polish transition experience, and explore individuals' self-reported attitudes. Using unusually long and frequent (monthly) representative surveys of the population, carried out by the Polish poll institute (CBOS) from 1992 to 2005, we identify a structural break in the relationship between income inequality and subjective well-being. The downturn in the tolerance for inequality (1997) coincides with increasing distrust of political elites.JEL Classification: C25, D31, I30, P20, P26
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