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Country-Specific Preferences and Employment Rates in Europe

Listed author(s):
  • Simone Moriconi

    ()

    (Università Cattolica di Milano and CREA, University of Luxembourg)

  • Giovanni Peri

    ()

    (University of California, Davis)

European countries exhibit significant differences in employment rates of adult males. Differences in labor-leisure preferences, partly determined by cultural values that vary across countries, can be responsible for part of these differences. However, differences in labor market institutions, productivity, and skills of the labor force are also crucial factors and likely correlated with preferences. In this paper we use variation among first- and second-generation cross-country European migrants to isolate the effect of culturally transmitted labor-leisure preferences on individual employment rates. If migrants maintain some of their country of origin labor-leisure preferences as they move to different labor market conditions, we can separate the impact of preferences from the effect of other factors. We find country-specific labor-leisure preferences explain about 24% of the top-bottom variation in employment rates across European countries.

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File URL: http://wwwfr.uni.lu/content/download/83507/1026491/file/2015_11%20Country-Specific%20Preferences%20and%20Employment%20Rates%20in%20Europe.pdf
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Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 15-11.

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Date of creation: 2015
Handle: RePEc:luc:wpaper:15-11
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