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...

Research on immigrants’ educational disadvantages largely focuses on differences in student achievement tests. Exploiting data from the German PIRLS extension, we find that second-generation immigrants face additional disadvantages with respect to grades and teacher recommendations for...