Pre‐Reformation Roots of the Protestant Ethic

Abstract

We hypothesize that cultural appreciation of hard work and thrift, the Protestant ethic according to Max Weber, had a pre-Reformation origin. The proximate source of these values was, according to the proposed theory, the Catholic Order of Cistercians. In support, we first document an impact from the Order on growth within the epicenter of the industrial revolution; English counties that were more exposed to Cistercian monasteries experienced faster productivity growth from the 13th century onwards.Consistent with a cultural influence, this impact is also found after the monasteries were dissolved in the 1530s. Second, we find that the values emphasized by Weber are relatively more pervasive in European regions where Cistercian monasteries were located historically, and that the legacy of the Cistercians can be detected in present-day employment rates across European sub-regions.

Endogenous Institutions and Economic Outcomes

“…To measure present‐day culture, I consider the relevance of respect and the extent of trust self‐reported to the 2008 European Values Study, which is the only wave listing the NUTS 2 region where the respondent lived when she/he was 14 and thus culturally mature (Andersen et al . ). Both values represent norms of ‘generalized’ morality applied outside the group of friends and relatives (Platteau ), thus they embody the implicit reward from cooperating in any prisoner's dilemma and investment types of activity analysed in the Boranbay and Guerriero () model and spread by the Cistercians and Franciscans.…”

“…Focusing on the Cistercians, Andersen et al . () propose a similar mechanism but describe them as aimed at spreading values of hard work and thrift. Albeit consistent with Weber () and Baumol (), this vision is at odds with the more recent and substantial historic literature introduced in Section I.…”

“…Contrary to the speculation by Andersen et al . (), the fundamental issue distancing the order's founders from Molesme was not its ‘failure to observe the Rule of St Benedict [but the fact that it] was rich [and] association of possession with virtues is not usually long‐lasting’ (Burton and Kerr , p. 11) . This reasoning led the Cistercians to embrace a cult of corporate poverty and austerity, which was exemplified in very taxing rules of monastic life and a deep contempt for those members of the community enjoying social competition and seeking the accumulation of wealth (Burton and Kerr , pp.…”

“…Overall, while it is difficult to see in the order's action a desire to support ‘cultural values [assisting] the rise of capitalism outside the monastic walls’ (Andersen et al . , pp. 1756–7), it seems natural to interpret it, as the Cistercians did in the Carta Caritatis , as their duty ‘to be of service to [their brothers,] avoid the evil of avarice [and] retain the care of their souls for the sake of charity’.…”

Culture, diffusion, and economic development: The problem of observational equivalence

“…Economists have been studying the effects of culture on economic development at least since Weber (1930) proposed his famous "protestant ethic" thesis, which posited that protestantism was conducive to capitalist development due to its emphasis on thrift, hard work, and human capital accumulation (Andersen et al, 2013;Becker and Woessmann, 2009). Additional cultural determinants of comparative development have been suggested in the literature, including differences in levels of trust, cooperation, family ties, individualism, obedience, and attitudes towards work and other individuals Giuliano, 2010, 2014;Giuliano, 2007;Gorodnichenko and Roland, 2016;Guiso et al, 2006Guiso et al, , 2009Knack and Keefer, 1997;Zak and Knack, 2001).…”