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Cultural Values and Productivity

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  • Andreas Ek

Abstract

This paper estimates differences in human capital as country-of-origin-specific labor productivity terms in firm production functions, making it immune to wage discrimination concerns. After accounting for education and experience, estimated human capital varies by a factor of around three between the 90th and the 10th percentile. When I investigate which country-of-origin characteristics most closely correlate with human capital, cultural values are the only robust predictor. This relationship persists among children of migrants. Consistent with a plausible cultural mechanism, individuals whose origin places a high value on autonomy hold a comparative advantage in positions characterized by a low degree of routinization.

Suggested Citation

  • Andreas Ek, 2024. "Cultural Values and Productivity," Journal of Political Economy, University of Chicago Press, vol. 132(1), pages 295-335.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/726239
    DOI: 10.1086/726239
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