NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State 0910
This paper studies the role of culture in shaping unemployment outcomes. The empir- ical analysis is based on local comparisons across a language barrier in Switzerland. This Röstigraben separates 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 dura- tion 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.
culture cultural transmission unemployment duration regional unemployment