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The Roots of Low European Employment: Family Culture?

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Author Info
Algan, Yann
Cahuc, Pierre

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Abstract

OECD countries faced largely divergent employment rates during the last decades. But the whole bulk of the cross-national and cross-temporal heterogeneity relies on specific demographic groups: prime-age women and younger and older individuals. This paper argues that family labour supply interactions and cross-country heterogeneity in family culture are key for explaining these stylized facts. First we provide a simple labour supply model in which heterogeneity in family preferences can account for cross-country variations in both the level and the dynamics of employment rates of demographic groups. Second, we provide evidence based on international individual surveys that family attitudes do differ across countries and are largely shaped by national features. We also document that cross-country differences in family culture cause cross-national differences in family attitudes. Studying the correlation between employment rates and family attitudes, we then show that the stronger preferences for family activities in European countries may explain both their lower female employment rate and the fall in the employment rates of young and older people.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5169.

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Date of creation: Aug 2005
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Handle: RePEc:cpr:ceprdp:5169

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Keywords: culture employment rate family attitudes

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Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Cavalcanti, Tiago & Tavares, José, 2007. "The Output Cost of Gender Discrimination: A Model-Based Macroeconomic Estimate," CEPR Discussion Papers 6477, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Mayssun El-Attar, 2007. "Trust, Child Care Technology Choice and Female Labor Force Participation," IZA Discussion Papers 3135, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Sascha O. Becker & Samuel Bentolila & Ana Fernandes & Andrea Ichino, 2005. "Youth Emancipation and Perceived Job Insecurity of Parents and Children," IZA Discussion Papers 1836, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Algan, Yann & Cahuc, Pierre, 2007. "Social Attitudes and Economic Development: An Epidemiological Approach," CEPR Discussion Papers 6403, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Herwig Immervoll & David Barber, 2006. "Can Parents Afford to Work? Childcare Costs, Tax-Benefit Policies and Work Incentives," IZA Discussion Papers 1932, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Algan, Yann & Cahuc, Pierre, 2006. "Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?," CEPR Discussion Papers 5489, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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