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41 Eur. J.L. & Econ. 1 (2016)

handle is hein.journals/eurjlwec41 and id is 1 raw text is: Eur J Law Econ (2016) 41:1-63
DOI 10.1007/s10657-015-9521-0                                        CrossMrk
Economic well-being and anti-Semitic, xenophobic,
and racist attitudes in Germany
Naci Mocan1,23 - Christian Raschke3,4
Published online: 17 December 2015
© Springer Science+Business Media New York 2015
Abstract The fear and hatred of others who are different has economic conse-
quences because such feelings are likely to translate into discrimination in labor,
credit, housing, and other markets. The implications range from earnings inequality
to intergenerational mobility. Using German data from 1996 and 2006, we analyze
the determinants of racist and xenophobic feelings towards foreigners in general,
and against specific groups such as Italians, Turks, and Asylum Seekers. We also
analyze racist and anti-Semitic feelings towards German citizens who differ in
ethnicity (Aussiedler from Eastern Europe) or in religion (German Jews). Individ-
uals' perceived (or actual) economic well-being is negatively related to the strength
of these feelings. Education, and having contact with foreigners mitigate racist, anti-
Semitic and xenophobic feelings. People who live in states which had provided
above-median support of the Nazi party in the 1928 elections have stronger anti-
Semitic feelings today. The results are not gender-driven. They are not an artifact of
economic conditions triggering feelings about job priority for German males, and
they are not fully driven by fears about foreigners taking away jobs. The results of
the paper are consistent with the model of Glaeser (Q J Econ 120(1):45-86, 2005)
on hate, and with that of Akerlof and Kranton (Q J Econ 105(3):715-753, 2000; J
Econ Perspect 19(1):9-32, 2005) on identity in the utility function.
® Naci Mocan
mocan@lsu.edu
Christian Raschke
raschke@shsu.edu
Louisiana State University, Baton Rouge, LA, USA
2  NBER, Cambridge, MA, USA
3  IZA, Bonn, Germany
4  Sam Houston State University, Huntsville, TX, USA

_ Springer