Table 1. Descriptive Statistics Variable Obs. Mean Std ...

Table 1. Descriptive Statistics Variable Obs. Mean Std. Dev. Min Culture 71 78.71 8.13 61.68 Gini of Income 71 37.11 8.59 23.17 Tropical Area 71 0.21 0.38 0 Ethnic Diversity 71 0.36 0.23 0 Language Diversity 69 0.31 0.26 0 Religious Diversity 70 0.42 0.23 0 State History 71 0.52 0.23 0.07 Log GDP per capita 70 9.00 1.14 5.48 Trade Openness 70 70.27 31.25 20.00 Polity Index 70 5.85 5.35 -7 Note: Appendix A describes in detail all the data and their sources.

Max 100.86 65.38 1 0.93 0.92 0.86 0.94 10.71 149.20 10

Table 2. The Impact of Inequality on Culture: The Exclusion Restriction Dependent variable: OLS Culture (1) Cons 87.87*** (3.96) Gini of Income

-0.222** (.011)

Tropical Area

-4.369 (2.624)

Euroshare Number of obs. F-stat for first-stage on excluded instrument Adjusted R2 Robust F-stat Minimum eigenvalue statistic 2SLS Size of nominal 5% Wald test at 10% 2SLS Size of nominal 5% Wald test at 15%

71

IV (3) 108.82*** (6.918) -0.843*** (0.179)

8.972*** (2.63) 53 19.67

0.15 24.64 28.02 16.38 8.96

Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. In the IV regression, inequality is instrumented by Tropical Area.

Table 3. Overidentification Tests Dependent variable: Culture Cons

(1) 97.77*** (5.707)

(2) 98.69*** (5.715)

-0.51*** (0.147)

-0.54*** (0.149)

First Stage Estimation 36.94*** (1.85)

33.92*** (0.867)

Tropical Area

10.29*** (3.679)

11.96*** (2.72)

Land Suitability

-9.707* (5.337)

Gini of Income

Cons

Commexporter Number of obs. F-stat for first-stage on excluded instrument Sargan test (p-value) Basmann test (p-value) Wooldridge test (p-value)

66

4.144 (2.697) 71

19.29

13.67

0.2667 0.2733 0.2870

0.9088 0.9107 0.9286

Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Wooldridge test is robust to heteroskedasticity. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Dependent variable: Culture Cons

Gini of Income

Table 4. The Impact of Inequality on Culture: Controlling for Regional-Specific Effects OLS IV IV IV IV (1) (2) (3) (4) (5) 91.17*** 98.90*** 99.15*** 108.68*** 113.73*** (3.451) (5.976) (6.11) (8.15) (15.89) -0.335*** (0.083)

-0.544*** (0.154)

reg_eapsa

-0.553*** (0.159)

-0.853*** (0.227)

-0.865** (0.367)

IV (7) 116.11*** (13.81)

-0.521*** (0.149)

-1.118*** (0.427)

0.541 (2.772)

reg_nalac

3.644 (4.132) 10.10*** (2.900)

reg_ecawe

15.12** (6.544) -5.744 (4.468)

reg_menassa Number of obs. F-stat for first-stage on excluded instrument Ajusted R2

IV (6) 98.47*** (5.78)

71

71

71

71

71

-2.816 (2.397) 71

28.40

20.45

37.30

22.47

16.75

5.882 (5.359) 71 23.63

0.1257

Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of variables are given in Appendix A. Regional dummies are based on the World Bank’s regional classification: reg_eapsa for countries in East Asia and the South Pacific; reg_nalac for countries in North America and Latin America; reg_ecawe for countries in Europe and Central Asia; and reg_menassa for countries in the Middle East and Africa. Regressions 2 to 7 employ TSLS and use Tropical Area as an instrument of inequality.

Table 5. The Impact of Inequality on Culture: Controlling for Geographic Variables Dependent variable: Culture

(1)

(2)

(4)

99.76***

99.32***

99.77***

(5.687)

(5.968)

(5.635)

Gini of Income

-0.541*** (0.140)

-0.550*** (0.153)

-0.543*** (0.140)

Landlocked Countries

-4.95** (1.948)

Cons

Distance to Coast Number of obs.

71

-4.95** (2.124) -0.0004 (0.002)

0.0003 (0.002)

70

70

F-stat for first-stage 15.55 15.69 13.16 on excluded instrument Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Table 6. The Impact of Inequality on Culture: Controlling for Historical Variables Dependent variable: Culture Cons

(1) 108.10*** (9.456)

Excluding Europe (1b) 100.93*** (9.208)

Gini of Income

-0.671***

-0.482***

-0.571***

-0.614***

-0.506***

-0.851***

-0.450***

-1.079***

(0.196)

(0.187)

(0.172)

(0.185)

(0.159)

(0.225)

(0.148)

(0.419)

-8.57

-12.66*

-20.36**

(5.328)

(6.483)

(8.503)

State History

British Legal Origin

French Legal Origin

German Legal Origin

Socialist Legal Origin

Scandinavian Legal Origin Number of obs.

(2) 99.58*** (6.472)

(3) 100.61*** (6.585)

(4) 97.13*** (6.279)

(5) 113.81*** (9.109)

(6) 94.58*** (5.743)

(8) 129.11*** (19.425)

1.74 (3.292) 2.49

4.85

(2.277)

(3.827) 4.93** (2.036)

8.43** (3.815) -10.38*** (2.494)

-7.89** (3.938) 15.06***

11.51**

(2.565)

(4.710)

71 55 71 71 71 71 71 71 F-stat for first-stage on 18.62 17.57 14.47 24.41 18.14 23.40 27.76 17.41 excluded instrument Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Table 7. The Impact of Inequality on Culture: Controlling for Social Heterogeneity Dependent variable: Culture (1) (2) (3) Cons 97.75*** 98.58*** 98.69*** (5.72) (5.199) (6.63) Gini of Income

Ethnic Diversity

-0.437*** (0.163)

-0.459*** (0.128)

-0.554*** (0.159)

-0.964*** (0.268)

-7.92* (4.736)

Language Diversity

-8.59** (3.491)

Religious Diversity

1.70 (4.43)

Genetic Distance Number of obs. F-stat for first-stage on excluded instrument

(4) 107.98*** (8.403)

71

69

70

0.73*** (0.216) 71

14.30

12.03

14.52

28.97

Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Table 8. The Impact of Inequality on Culture: Controlling for Religious Affiliation Dependent variable: Culture Cons

(1) 99.78*** (5.912)

(2) 91.20*** (5.631)

(3) 96.41*** (5.819)

(4) 101.31*** (5.754)

(5) 98.04*** (5.825)

(6) 99.06*** (5.857)

Gini of Income

-0.591*** (0.154)

-0.405*** (0.150)

-0.492*** (0.147)

-0.576*** (0.150)

-0.516*** (0.149)

-0.550*** (0.150)

Catholics

2.54 (2.032)

Protestants

Judaists

Islamism

Hinduism

Buddism

20.64*** (3.217) 175.69 (119.70) -7.71** (3.169) -12.49*** (1.431) 2.08 (2.393) 71

Number of obs. 71 71 71 71 71 F-stat for first-stage 16.65 14.58 19.47 14.59 14.79 16.56 on excluded instrument Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Table 9. The Impact of Inequality on Culture: Controlling for Contemporary Demographic, Economic and Political Variables Dependent variable: Culture Cons Gini of Income GDP Growth Trade Openness Population

Urbanization

Polity Index

(1) 101.55*** (6.866)

(2) 105.43*** (8.439)

(3) 98.82*** (7.243)

(4) 76.90*** (5.377)

(5) 92.06*** (5.829)

(6) 82.20*** (12.97)

-0.570*** (0.157)

-0.622*** (0.179)

-0.545*** (0.167)

-0.338*** (0.119)

-0.442*** (0.144)

-0.376** (0.153)

-0.56 (0.415)

0.24 (0.464) -0.05 (0.032)

-0.04 (0.039) 0.01 (0.657)

-0.10 (0.762) 0.23*** (0.047)

0.19** (0.05) 0.54*** (0.164) 70

0.22 (0.175) 67

Number of obs. 70 70 71 69 F-stat for first-stage 16.92 22.21 13.92 23.32 14.64 10.20 on excluded instrument Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.

Table 10. The Impact of Inequality on Culture: Controlling for Relevant Variables Dependent variable: Culture Cons

(1) 97.25*** (16.27)

(2) 97.49*** (15.85)

(3) 97.61*** (15.56)

(4) 109.17*** (20.90)

(5) 85.01*** (17.37)

(6) 104.07*** (13.02)

(7) 98.64*** (16.46)

Gini of Income

-0.597* (0.308)

-0.585* (0.308)

-0.571* (0.327)

-0.876** (0.432)

-0.391 (0.323)

-0.693*** (0.248)

-0.591** (0.309)

State History

-8.99 (6.151)

-9.33 (5.795)

-9.38 (5.741)

-9.52 (6.083)

-2.39 (6.505)

-9.08 (5.886)

-9.29 (5.719)

Socialist Legal Origin

-5.53 (3.946)

-5.02 (4.165)

-4.99 (4.162)

-6.99 (4.737)

-2.27 (4.396)

-6.88** (3.226)

-5.30 (4.277)

Scandinavian Legal Origin

10.66*** (4.018)

10.80*** (4.017)

10.55*** (3.747)

9.97** (4.416)

-0.90 (4.863)

9.02*** (3.315)

10.70*** (4.053)

Germanic Legal Origin

4.71* (2.697)

5.51* (2.989)

5.30* (2.817)

3.58 (3.748)

3.29 (2.509)

3.57 (2.574)

5.39* (3.039)

Urbanization

0.15*** (0.049)

0.14*** (0.048)

0.14*** (0.045)

0.10 (0.068)

0.14*** (0.044)

0.12** (0.058)

0.13** (0.055)

-1.54 (1.775)

-1.41 (1.661)

0.13 (2.073)

-2.24 (1.748)

-1.28 (1.851)

-1.67 (1.747)

Landlocked Countries

Ethnic Diversity

-1.41 (3.703)

Genetic Distance

0.30 (0.223)

Protestants

16.40*** (6.334)

Islamism

-3.47 (3.592)

Hinduism Number of obs. F-stat for first-stage on excluded instrument

69

69

69

69

69

69

-5.72 (4.634) 69

14.59

12.66

11.00

12.00

13.22

11.23

10.94

Notes: Robust standard errors in parenthesis. ***,**, * means significant at 1%, 5%, and 10% respectively. Details of the variables are given in Appendix A. All regressions employ TSLS. Inequality is instrumented by Tropical Area.