Family values and the regulation of labor

Arbeitspapier

Flexible labor markets require geographically mobile workers to be efficient. Otherwise, firms can take advantage of the immobility of workers and extract monopsony rents. In cultures with strong family ties, moving away from home is costly. Thus, individuals with strong family ties rationally choose regulated labor markets to avoid moving and limiting the monopsony power of firms, even though regulation generates lower employment and income. Empirically, we do find that individuals who inherit stronger family ties are less mobile, have lower wages, are less often employed and support more stringent labor market regulations. There are also positive cross-country correlations between the strength of family ties and labor market rigidities. Finally, we find positive correlations between labor market rigidities at the beginning of the twenty first century and family values prevailing before World War II, which suggests that labor market regulations have deep cultural roots.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4747

Classification and Topics

• Classification: Wirtschaft ; Capitalist Systems: Political Economy ; Cultural Economics; Economic Sociology; Economic Anthropology: General ; Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
• Subject: Family values ; labor regulation ; Arbeitnehmerschutz ; Arbeitsmarktflexibilisierung ; Familiensoziologie ; Soziale Werte ; Arbeitsmobilität ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Alesina, Alberto ; Algan, Yann ; Cahuc, Pierre ; Giuliano, Paola
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/35835
• Last update: 10.03.2025, 11:45 AM CET