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dc.contributor.authorAghion, Philippeen_US
dc.contributor.authorAlgan, Yannen_US
dc.contributor.authorCahuc, Pierreen_US
dc.date.accessioned2008-09-26en_US
dc.date.accessioned2010-07-07T11:31:19Z-
dc.date.available2010-07-07T11:31:19Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008092948en_US
dc.identifier.urihttp://hdl.handle.net/10419/34992-
dc.description.abstractCan public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand. To explain this relation, we develop a model of learning of the quality of labor relations. State regulation crowds out the possibility for workers to experiment negotiation and learn about the true cooperative nature of participants in the labor market. This crowding out effect can give rise to multiple equilibria: a good equilibrium characterized by strong beliefs in cooperation, leading to high union density and low state regulation; and a bad equilibrium, characterized by distrustful labor relations, low union density and strong state regulation of the minimum wage. We then use surveys on social attitudes and unionization behavior to document the relation between minimum wage legislation and the beliefs about the scope of cooperation in the labor market.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3680en_US
dc.subject.jelJ30en_US
dc.subject.ddc330en_US
dc.subject.keywordSocial capitalen_US
dc.subject.keywordquality of labor relationsen_US
dc.subject.keywordtrade unionsen_US
dc.subject.keywordminimum wageen_US
dc.subject.stwArbeitsmarktpolitiken_US
dc.subject.stwMindestlohnen_US
dc.subject.stwArbeitsbeziehungenen_US
dc.subject.stwGewerkschaftsbewegungen_US
dc.subject.stwKooperationen_US
dc.subject.stwSoziale Werteen_US
dc.subject.stwOECD-Staatenen_US
dc.titleCan policy interact with culture? Minimum wage and the quality of labor relationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn578593076en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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