DP7405 Does Culture Affect Unemployment? Evidence from the Röstigraben
|Author(s):||Beatrix BrÃ¼gger, Rafael Lalive, Josef ZweimÃ¼ller|
|Publication Date:||August 2009|
|Keyword(s):||cultural transmission, culture, regional unemployment, unemployment duration|
|JEL(s):||J21, J64, Z10|
|Programme Areas:||Labour Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7405|
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 RÃ¶stigraben 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.