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Country-Specific Preferences and Employment Rates in Europe

Author

Listed:
  • Simone Moriconi

    (Università Cattolica del Sacro Cuore
    Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore)

  • Giovanni Peri
Abstract
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 24per cent of the top-bottom variation in employment rates across European countries.

Suggested Citation

  • Simone Moriconi & Giovanni Peri, 2015. "Country-Specific Preferences and Employment Rates in Europe," DISCE - Working Papers del Dipartimento di Economia e Finanza def029, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie1:def029
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor-Leisure Preferences; Cultural Transmission; Employment; Europe; Migrants.;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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