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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 empir- ical 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 dura- tion 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.

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  • Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," NRN working papers 2009-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:nrnwps:2009_10
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Unemployment: Culture matters more than policy
      by Economic Logician in Economic Logic on 2009-08-27 19:48:00

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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'économie 11.05, Université de Lausanne, Faculté des HEC, Département d’économie.
    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?," VfS 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.
    10. Francesco Giavazzi & Fabio Schiantarelli & Michel Serafinelli, 2013. "Attitudes, Policies, And Work," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1256-1289, December.
    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.
    13. Beata Bieszk-Stolorz & Krzysztof Dmytrow, 2021. "Clustering of Voivodships in Poland According to the Effectiveness of Professional Activisation in the Aspect of Changes in Procedures," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 108-121.
    14. Giavazzi, Francesco & Schiantarelli, Fabio & Serafinelli, Michel, 2009. "Culture, Policies and Labor Market Outcomes," IZA Discussion Papers 4558, Institute of Labor Economics (IZA).
    15. Aderonke Osikominu & Volker Grossmann & Marius Osterfeld, 2020. "Sociocultural background and choice of STEM majors at university," Oxford Economic Papers, Oxford University Press, vol. 72(2), pages 347-369.
    16. 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.
    17. Jens Suedekum, 2018. "Economic effects of differences in dialect," IZA World of Labor, Institute of Labor Economics (IZA), pages 414-414, January.
    18. 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.
    19. 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.
    20. 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, vol. 0, pages 55-73, February.
    21. 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).
    22. Guin, Benjamin, 2017. "Culture and household saving," Working Paper Series 2069, European Central Bank.
    23. Christoph Basten & Frank Betz, 2012. "Beyond Work Ethic," KOF Working papers 12-309, KOF Swiss Economic Institute, ETH Zurich.
    24. Christophe Volonté, 2015. "Culture and Corporate Governance: The Influence of Language and Religion in Switzerland," Management International Review, Springer, vol. 55(1), pages 77-118, February.
    25. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, August.

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    More about this item

    Keywords

    culture; cultural transmission; unemployment duration; regional unemployment;
    All these keywords.

    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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