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Does Culture Affect Unemployment? Evidence from the Röstigraben

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  • Beatrix Brügger
  • Rafael Lalive
  • Josef Zweimüller

Abstract

This paper studies the role of culture in shaping unemployment outcomes. The empirical analysis is based on local comparisons across a language barrier in Switzerland. This Röstigraben separates cultural groups, but neither labor markets nor political jurisdictions. Local contrasts across the language border identify the role of culture for unemployment. Our findings indicate that differences in culture explain differences in unemployment duration on the order of 20 %. Moreover, we find that horizontal transmission of culture is more important than vertical transmission of culture and that culture is about as important as strong changes to the benefit duration.

Suggested Citation

  • Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CESifo Working Paper Series 2714, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2714
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp2714.pdf
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    References listed on IDEAS

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    Cited by:

    1. Frandsen, Brigham R. & Frölich, Markus & Melly, Blaise, 2012. "Quantile treatment effects in the regression discontinuity design," Journal of Econometrics, Elsevier, vol. 168(2), pages 382-395.
    2. Bauer, Philipp C. & Riphahn, Regina T., 2013. "Institutional determinants of intergenerational education transmission — Comparing alternative mechanisms for natives and immigrants," Labour Economics, Elsevier, vol. 25(C), pages 110-122.
    3. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    4. Fouka, Vasiliki & Schlaepfer, Alain, 2017. "Agricultural Returns to Labor and the Origins of Work Ethics," MPRA Paper 78556, University Library of Munich, Germany.
    5. Beatrix Eugster & Raphaël Parchet, 2011. "Culture and Taxes: Towards Identifying Tax Competition," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 11.05, Université de Lausanne, Faculté des HEC, DEEP.
    6. Beatrix Eugster, 2015. "Effects of a Higher Replacement Rate on Unemployment Durations, Employment, and Earnings," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 151(I), pages 3-25, March.
    7. Daniel Oesch & Oliver Lipps, 2011. "Does Unemployment Hurt Less if There Is More of It Around?: A Panel Analysis of Life Satisfaction in Germany and Switzerland," SOEPpapers on Multidisciplinary Panel Data Research 393, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Marcén, Miriam, 2014. "The role of culture on self-employment," Economic Modelling, Elsevier, vol. 44(S1), pages 20-32.
    9. Martin Ljunge, 2012. "The Spirit of the Welfare State? Adaptation in the Demand for Social Insurance," Journal of Human Capital, University of Chicago Press, vol. 6(3), pages 187-223.
    10. Basten, Christoph & Betz, Frank, 2011. "Marx vs. Weber: does religion affect politics and the economy?," Working Paper Series 1393, European Central Bank.
    11. Christoph Basten & Frank Betz, 2012. "Beyond Work Ethic," KOF Working papers 12-309, KOF Swiss Economic Institute, ETH Zurich.
    12. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0216-5 is not listed on IDEAS
    13. repec:iza:izawol:journl:2018:n:414 is not listed on IDEAS

    More about this item

    Keywords

    culture; cultural transmission; unemployment duration; regional unemployment;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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