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Since the pioneering study by Banfield, the North‐South gap in Italian social capital has been considered by international scholars as an example of how cultural diversity within a country can generate different developmental outcomes. Most studies, however, suffer from limited external validity and measurement error. This paper exploits a new and representative online lab‐experiment to assess social‐capital patterns in Italy. Unlike previous experiments, we do not inform participants about the geographic origins of their counterparts. This feature allows us to assess the North‐South gap in universal, as opposed to parochial, behavior. Results suggest that Southerners and Northerners do not systematically differ in generalized prosocial preferences. Only trustworthiness is higher among. Northerners, while they are statistically similar to Southerners in many other economic preferences such as cooperation, trust, expected trustworthiness, altruism, and risk tolerance. We also show that the gap in trustworthiness stems from the lower reciprocity of Southerners in response to large transfers, and it is characterized by the intergenerational transmission of norms. Possible policy implications are discussed. [ABSTRACT FROM AUTHOR]

In this paper, we analyze the role of culture in determining whether, or not, an individual is a homeowner. We use data on first‐generation immigrants who arrived in the United States under 6 years old. Following the epidemiological approach, any dissimilarity in the proportion of homeowners by country of origin may be interpreted as a consequence of cultural differences. Our estimates indicate that there is a positive and statistically significant relationship between the cultural proxy and the immigrants' choice of home‐ownership. Additionally, we present evidence of different mechanisms of transmission of culture, which reinforces our results on the cultural effect. [ABSTRACT FROM AUTHOR]

This paper identifies the extent to which cultural diversity induced by internal migration affects urban innovation in China. We measure cultural diversity by an index of "plurality" of provinces of origin. Using the 2000 and 2005 population census data, we find that innovative activities are higher in cities with a higher degree of cultural diversity. Further heterogeneity analysis shows that cultural diversity, not only of the highly skilled, but also of the low skilled, has a positive effect on innovation. Our study contributes to the scarce evidence on the effect of cultural diversity on innovation in developing countries. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper investigates the interplay between cultural traditions and policy effectiveness. It explores the differential impact of a large development program (Cassa per il Mezzogiorno), implemented for four decades, starting in the 1950s, to stimulate convergence between Italy's south and the more developed north, on municipalities with different histories. Namely, we consider a sample of municipalities located on either side of the historical border of the Kingdom of the Two Sicilies, whose legacy is considered, from Putnam onwards, to be a prime-facie cause of Southern Italy's underdevelopment. Having been part of the Kingdom of the Two Sicilies is associated with a negative impact of development policies, but only when the allocation of development funds through the Cassa per il Mezzogiorno suffered from low quality of governance and was driven by political considerations rather than by efficiency ones. [ABSTRACT FROM AUTHOR]

Abstract This paper argues that new immigrants cluster in culturally homogeneous groups in the host country because of imperfect information. However, a pulling effect exists provided that the cultural communities are not too large. With a panel of migration flows to the major O.E.C.D. countries from the mid 1980s to the mid 1990s, it is shown that the existence of similar cultural communities attracts new immigrants. However, the effect is not homogeneous for all types of source and destination countries. Furthermore, the pulling effect is shown to fall to zero for cultural communities above a certain threshold size. [ABSTRACT FROM AUTHOR]