%0 Report %A Falck, Oliver %A Heblich, Stephan %A Lameli, Alfred %A Suedekum, Jens %T Dialects, Cultural Identity, and Economic Exchange %D 2010 %8 2010 Feb %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4743 %U https://www.iza.org/index.php/publications/dp4743 %X 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. %K dialects %K language %K culture %K internal migration %K gravity %K Germany