@TechReport{iza:izadps:dp4743, author={Falck, Oliver and Heblich, Stephan and Lameli, Alfred and Suedekum, Jens}, title={Dialects, Cultural Identity, and Economic Exchange}, year={2010}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4743}, url={https://www.iza.org/index.php/publications/dp4743}, abstract={We investigate whether time-persistent cultural borders impede economic exchange across regions of the same country. To measure cultural differences we evaluate, for the first time in economics, linguistic micro-data about phonological and grammatical features of German dialects. These data are taken from a unique linguistic survey conducted between 1879 and 1888 in 45,000 schools. Matching this information to 439 current German regions, we construct a dialect similarity matrix. Using a gravity analysis, we show that current cross-regional migration is positively affected by historical dialect similarity. This suggests that cultural identities formed in the past still influence economic exchange today.}, keywords={dialects;language;culture;internal migration;gravity;Germany}, }