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The Roots of Low European Employment: Family Culture?

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Author Info
Yann Algan (Université Marne la Vallée, CEPREMAP, OEP and IZA Bonn)
Pierre Cahuc () (University of Paris 1, CREST-INSEE, CEPR and IZA Bonn)

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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 labor supply interactions and cross-country heterogeneity in family culture are key for explaining these stylized facts. First we provide a simple labor 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1683.

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Length: 46 pages
Date of creation: Jul 2005
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Handle: RePEc:iza:izadps:dp1683

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Related research
Keywords: employment rate; culture; 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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  5. Gianna Claudia Giannelli & Chiara Monfardini, 2001. "JOINT DECISIONS ON HOUSEHOLD MEMBERSHIP AND HUMAN CAPITAL ACCUMULATION OF YOUTHS The role of expected earnings and local markets," CHILD Working Papers wp02_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
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  6. Antecol, Heather, 2000. "An examination of cross-country differences in the gender gap in labor force participation rates," Labour Economics, Elsevier, vol. 7(4), pages 409-426, July. [Downloadable!] (restricted)
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  11. Algan, Yann & Cahuc, Pierre, 2004. "Job Protection: The Macho Hypothesis," IZA Discussion Papers 1192, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2002. "Labor Market Institutions and Demographic Employment Patterns," NBER Working Papers 9043, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Francine D. Blau, 1991. "The Fertility of Immigrant Women: Evidence from High Fertility Source Countries," NBER Working Papers 3608, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  18. Richard B. Freeman & Ronald Schettkat, 2005. "Marketization of household production and the EU-US gap in work," Economic Policy, CEPR, CES, MSH, vol. 20(41), pages 6-50, 01. [Downloadable!] (restricted)
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  21. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: an empirical investigation of beliefs, work, and fertility," Staff Report 361, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  22. Paola Giuliano, 2004. "On the determinants of living arrangements in Western Europe: Does Cultural Origin Matter?," Econometric Society 2004 North American Summer Meetings 68, Econometric Society.
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Full references

Cited by:
(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. 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:
  2. 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)
  3. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: A Theory," IZA Discussion Papers 3668, 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)
    Other versions:
  5. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. 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:
  7. Tito Boeri, 2005. "An Activating Social Security System," De Economist, Springer, vol. 153(4), pages 375-397, December. [Downloadable!] (restricted)
  8. Greenwood, Jeremy & Guner, Nezih, 2008. "Social Change," IZA Discussion Papers 3485, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," IZA Discussion Papers 3669, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Jean-Baptiste Michau, 2009. "Unemployment Insurance and Cultural Transmission: Theory and Application to European Unemployment," CEP Discussion Papers dp0936, Centre for Economic Performance, LSE. [Downloadable!]
  11. 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!]
  12. 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)
    Other versions:
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