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Does Culture Affect Unemployment? Evidence from the Röstigraben

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  • Brügger, Beatrix
  • Lalive, Rafael
  • Zweimüller, Josef

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 seperates 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

  • Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CEPR Discussion Papers 7405, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7405
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    Cited by:

    1. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    2. Fouka, Vasiliki & Schlaepfer, Alain, 2017. "Agricultural Returns to Labor and the Origins of Work Ethics," MPRA Paper 78556, University Library of Munich, Germany.
    3. 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.
    4. 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.
    5. Osikominu, Aderonke & Grossmann, Volker & Osterfeld, Marius, 2014. "Are Sociocultural Factors Important for Studying a Science University Major?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100404, Verein für Socialpolitik / German Economic Association.
    6. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 753-776, October.
    7. Marcén, Miriam, 2014. "The role of culture on self-employment," Economic Modelling, Elsevier, vol. 44(S1), pages 20-32.
    8. Thomas Gall & Paolo Masella, 2012. "Markets and jungles," Journal of Economic Growth, Springer, vol. 17(2), pages 103-141, June.
    9. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
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    11. 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.
    12. Basten, Christoph & Betz, Frank, 2011. "Marx vs. Weber: does religion affect politics and the economy?," Working Paper Series 1393, European Central Bank.
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    14. Grossmann, Volker & Osikominu, Aderonke & Osterfeld, Marius, 2016. "Sociocultural Background and Choice of STEM Majors at University," CEPR Discussion Papers 11250, C.E.P.R. Discussion Papers.
    15. Jean-Baptiste Michau, 2013. "Unemployment Insurance And Cultural Transmission: Theory And Application To European Unemployment," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1320-1347, December.
    16. repec:iza:izawol:journl:2018:n:414 is not listed on IDEAS
    17. 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.
    18. 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.
    19. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2014. "Chapter 2: Switzerland: Relic of the Past, Model for the Future?," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 55-73, February.
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    21. Guin, Benjamin, 2017. "Culture and household saving," Working Paper Series 2069, European Central Bank.
    22. Christoph Basten & Frank Betz, 2012. "Beyond Work Ethic," KOF Working papers 12-309, KOF Swiss Economic Institute, ETH Zurich.
    23. repec:spr:manint:v:55:y:2015:i:1:d:10.1007_s11575-014-0216-5 is not listed on IDEAS

    More about this item

    Keywords

    cultural transmission; culture; regional unemployment; unemployment duration;

    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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