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Language nuances, trust and economic growth

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Abstract

Language serves two key functions. It enables communication between agents, which allows the set-up and functioning of formal and informal institutions. It also serves a less obvious function, as it provides a reassuring quality more closely related with issues linked with trust, social capital, and cultural identification. While research on the role of language as a learning process is widespread, there is no evidence on the role of language as a signal of cultural affinity. We pursue this latter avenue of research and show that subtle language affinity is positively linked with change in earnings when using English-speaking data for cities in the Golden Horseshoe area in Southern Ontario during the period 1991 to 2001. The results are robust to changes in specification, and a broad number of empirical tests.

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Authors and Affiliations

  1. Inter-American Development Bank, 1300 New York Ave NW, Washington, DC, 20005, USA

    Alberto Chong

  2. Universidad ESAN, Alonso de Molina 1652, Monterrico, Surco, Lima, Peru

    Jorge Guillen

  3. University of Wisconsin-Madison, 429 Taylor Hall. 427 Lorch St., Madison, WI, 53706, USA

    Vanessa Rios

Authors
  1. Alberto Chong
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  2. Jorge Guillen
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  3. Vanessa Rios
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Correspondence to Alberto Chong.

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Chong, A., Guillen, J. & Rios, V. Language nuances, trust and economic growth. Public Choice 143, 191–208 (2010). https://doi.org/10.1007/s11127-009-9497-9

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