Culture compensates for weak institutions: Determinants of attitudes toward free-riding across the world

Abstract

This study investigates the factors contributing to cross-cultural variation in the disapproval of free-riding behaviors such as tax evasion, fare dodging, and benefits fraud. While some cross-cultural researchers contend that attitudes toward these behaviors exhibit minimal variance due to a universal value of fairness, others adopting an institutional perspective argue that significant differences can be explained by factors like government effectiveness and the rule of law. We aim to replicate the pivotal role of institutional quality and propose that its impact is further moderated by cultural dimensions of individualism-collectivism and tightness-looseness. Utilizing a diverse dataset from the World Values Survey and European Values Study, encompassing 92 countries and over 158,000 individuals, we employ multilevel modeling to explore global and contextual patterns. Our findings reveal that while institutional quality reduces tolerance for free riding globally, its effect is not uniform and varies significantly based on cultural context. Specifically, whereas attitudes to free riding in individualistic and loose cultures depend heavily on just and effective governance, in collectivist and tight societies this reliance diminishes as group-centric values and low tolerance toward deviance help sustain compliant attitudes even when institutional quality is low.