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Economics breeds culture

Author

Listed:
  • Patricio Garcia-Minguez

    (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

  • Ausias Ribo Argemi

    (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

Abstract

Several recent papers document the influence and long lasting effects oftechnology on preferences. Simultaneously, cultural factors are often invoked to explain heterogeneity in preferences. These two ideas suggest that culture determines the short run equilibrium values of economic variables, but, in the long run, culture changes in response to the underlying economic fundamentals. We build a model in which preferences are endogenous and the diversity in preferences (the "cultural" diversity) is explained by the variation in the relevant economic fundamentals. This can help explain observed differences in labor market attachment among groups defined e.g., by citizenship, ethnicity or gender.

Suggested Citation

  • Patricio Garcia-Minguez & Ausias Ribo Argemi, 2014. "Economics breeds culture," UB School of Economics Working Papers 2014/312, University of Barcelona School of Economics.
    • Handle: RePEc:ewp:wpaper:312web
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Endogenous Preferences; Technology; Culture; Labor market participation; Taxes.;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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